Bank of America is betting on these stocks in the first quarter of 2026
Bank of America is betting on several stocks trading at fair value or a discount to perform well in the first quarter, even as the S & P 500 is getting more expensive, according to a recent research note. The bank noted that stocks are largely trading at a premium this year, making good investments harder to find. There is “no way to sugar coat it – the S & P 500 is expensive,” BofA U.S. Equity Strategist Savita Subramanian said Friday in the note. Despite that, the bank named 10 stocks, including Amazon.com , Boeing and Dollar General , that could rise during the first three months of 2026. Its picks spanned nine industries, including retail, energy and shipping. These are a few of the stocks that made the cut. Amazon The online retail giant has considerable room to run in 2026, particularly as its Amazon Web Services business picks up, according to BofA. The analysts noted that Amazon offers investors exposure to the still-hot artificial intelligence trade, while AWS revenue is likely to accelerate this year. The firm is planning to pursue quantum computing and custom silicon development projects as part of its push into emerging technologies, they noted. And, many of its initiatives will be led by Amazon’s AI leadership team, which recently underwent a shake up. “Our thesis is that AWS can show better relative performance, and upside to Street revenue estimates, as the business enters 2026 in a much better capacity position than 2025,” strategist Anthony Cassamassino wrote. BofA has a buy rating on Amazon and a $303 price target. Amazon’s stock is up 2.9% over the past year Dollar General Dollar General could gain ground, particularly as higher-than-expected tax refunds stand to benefit its business in the first quarter, according to BofA analysts. The dollar store’s efforts to optimize its operations and reduce inventory are working, which should improve the firm’s bottom line in the coming quarter, they said. BofA has a buy rating on Dollar General stock and a $160 price target. Shares have jumped more than 80% in the past 12 months. Boeing Boeing’s commercial production rates are poised to grow, according to BofA. The firm noted that Boeing’s production of commercial airplanes continues to stabilize, while its operating performance is improving, after a series of mishaps forced some airlines to reevaluate their orders with the airplane manufacturer. “Production remaining stable is a key to investor confidence and the name building momentum for the year,” Cassamassino said in the note. The stock has a buy rating and a $270 per share price target from BofA. Boeing stock has risen nearly 32% over the past year.
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