On January 2, 2026, Bank of America released its list of top 10 stock recommendations for the first quarter, spanning nine different industries. The list features nine stocks with a Buy rating and one with an Underperform rating.
The Buy-rated selections are: Amazon.com (AMZN), Boeing (BA), Cigna (CI), Constellation Energy (CEG), Dollar General (DG), Equinix (EQIX), Merck (MRK), Spotify (SPOT), and Vertex Pharmaceuticals (VRTX). The sole Underperform rating was assigned to Lennar Corp (LEN), despite recent strength in the homebuilding sector.
Strategist Anthony Cassamassino explained the list focuses on companies poised for significant market and business-related catalysts in the coming quarter. While artificial intelligence (AI) remains a theme through picks like Amazon, Constellation Energy, and Equinix—all offering exposure to AI-related infrastructure—the bank noted the drivers for the broader list are more diverse this quarter.
Specific catalysts highlighted include potential upside for Cigna from upcoming healthcare legislation, Boeing's performance being tied to commercial production rates, and Dollar General potentially benefiting from higher-than-expected tax refunds in early 2026, which typically boost consumer spending at value retailers.
Concurrently, a separate analysis builds a bullish case for Boeing stock in 2026. The company's stock price rebounded from a November low of $176 to around $217 by early January, a ~68% increase from its April 2024 low. JPMorgan analysts anticipate this trajectory to continue if the company stays out of trouble. Key catalysts include a growing backlog of 5,900 planes worth over $535 billion, approval to increase 737 production, and the potential for major orders from Chinese airlines following a planned visit by Donald Trump to China in April. Wall Street analysts, including Deutsche Bank and JPMorgan, see the stock rising to $240-$245.
Despite the targeted opportunities, Bank of America's U.S. Equity Strategist Savita Subramanian warned that the S&P 500 valuations are expensive and stretched even after a strong 2025. The bank expects a more challenging environment for passive index exposure but sees specific opportunities in the Health Care, IT, and Real Estate sectors.
