Key Points
- Bank of America released its top 10 stock picks for the first quarter of 2026.
- The list includes nine “Buy” recommendations and one “Underperform” (Lennar).
- Top picks include Amazon, Boeing, Cigna, Dollar General, and Merck.
- The bank believes these companies have significant business catalysts on the horizon.
Bank of America just released its new list of top stock ideas for the first quarter of 2026. The list includes nine companies the bank recommends buying and one it suggests avoiding. According to the bank, these are companies that have major “catalysts” coming up that could push their stock prices higher in the near future.
The “Buy” list covers a wide range of industries and includes some of the biggest names in the market. Amazon is the top pick among large internet stocks, with the bank betting on continued growth in its cloud computing business, AWS, and its exposure to the AI boom.
Aerospace giant Boeing also cut, with analysts watching to see if the company can keep its production rates stable, which would be a key sign of a turnaround.
Other top picks include the healthcare companies Cigna and Merck, the energy firm Constellation Energy, and the data center operator Equinix. The bank also holds positions in the music streaming service Spotify and the pharmaceutical company Vertex.
On the retail side, Dollar General is a favorite, with the bank suggesting the company could benefit from higher-than-expected tax refunds in the first quarter.
The one company the bank is pessimistic about is the homebuilder Lennar, which received an “Underperform” rating.
While the overall market, as measured by the S&P 500, is considered expensive, Bank of America’s strategist Savita Subramanian says there are still pockets of opportunity. She specifically pointed to the Health Care, IT, and Real Estate sectors as looking attractive in the short term. This list of high-conviction picks is designed to guide investors on what the bank’s top analysts are most excited about as we head into the new year.
