BofA unveils its top 10 U.S. ideas for Q1 2026

Investing.com -- Bank of America has released its new list of high-conviction U.S. stock ideas for the first quarter of 2026, featuring nine Buy-rated names and one Underperform.

The quarterly lineup highlights companies that the bank believes have “significant market and business-related catalysts in the quarter ahead,” according to BofA strategist Anthony Cassamassino.

The Buy recommendations span nine industries and include Amazon, Boeing, Cigna, Constellation Energy, Dollar General, Equinix, Merck, Spotify, and Vertex Pharmaceuticals.

The lone Underperform is homebuilder Lennar. BofA said the list is designed as a short-term set of opportunities and will be updated only at the start of each quarter unless ratings change.

While artificial intelligence remains a key theme, the bank emphasised that “the drivers for the broader list are more diverse.” BofA noted that it sees legislative developments as a potential catalyst for Cigna, while for Merck, the bank highlighted its “attractive valuation.”

Dollar General, meanwhile, could benefit from “higher-than-expected tax refunds in F1Q26.”

Amazon is the firm’s top large-cap internet stock, “given exposure to AI vs AWS,” and the bank’s “expectation for AWS revenue growth to accelerate into 2026.”

“For Boeing, we expect 1Q will focus on commercial production rates,” added BofA. “Production remaining stable is a key to investor confidence and the name building momentum for the year.”

For the wider market, BofA’s U.S. equity strategist Savita Subramanian warned that “there is no way to sugar coat it – the S&P 500 is expensive.”

Still, she pointed to Health Care, IT and Real Estate as sectors that “screen attractive near-term.”

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