Bank of America has unveiled its latest list of high-conviction U.S. stock ideas for Q1 2026, featuring nine Buy-rated names and one Underperform recommendation.
Bank of America’s quarterly lineup features companies identified as having “significant market and business-related catalysts in the quarter ahead,” according to BofA strategist Anthony Cassamassino.
The Buy recommendations cover nine industries and include Amazon, Boeing, Cigna, Constellation Energy, Dollar General, Equinix, Merck, Spotify, and Vertex Pharmaceuticals. The only Underperform rating goes to homebuilder Lennar.
The bank emphasized that this list targets short-term opportunities and will be updated only at the start of each quarter unless there are rating changes.
While artificial intelligence remains a key theme, BofA noted that “the drivers for the broader list are more diverse.” Legislative developments could act as a catalyst for Cigna, while Merck stands out due to its “attractive valuation.”
Dollar General may benefit from “higher-than-expected tax refunds in the first quarter of 2026.”
Amazon tops BofA’s large-cap internet stock picks, given its exposure to AI through AWS and the bank’s expectation of accelerating AWS revenue growth into 2026.
“For Boeing, we expect the first quarter to focus on commercial production rates,” Cassamassino added. “Stable production is crucial for investor confidence and the company’s momentum this year.”
For the broader market, BofA’s U.S. equity strategist Savita Subramanian cautioned that “there is no way to sugar coat it – the S&P 500 is expensive.”
However, she highlighted Health Care, Information Technology, and Real Estate as sectors that “screen attractive near-term.”
Sources: Investing
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