Bank of America’s 2026 Stock Picks: Amazon and Boeing Lead the Charge

Wall Street's crystal ball just got an upgrade. Bank of America is placing its 2026 bets on a mix of tech titans and industrial giants, signaling a strategy that blends digital dominance with physical infrastructure.

The Picks: Digital Commerce Meets Aerospace

Amazon secures a top slot—no surprise for a firm that rewired global retail and now dominates cloud computing. The call hinges on relentless execution and a moat that seems to widen quarterly.

Boeing makes the cut, too. It's a classic recovery play, betting the aerospace giant finally fixes its supply chain and regulatory headaches. When it flies smoothly, profits soar.

The Strategy Behind the Selections

Analysts aren't just picking names; they're betting on narratives. E-commerce acceleration, cloud expansion, and a rebound in global travel and defense spending form the core thesis. It's a play on both the digital and physical economies firing in unison.

Why These Stocks? Why Now?

The timeline to 2026 allows for long-term themes to play out. It's about capitalizing on multi-year trends, not next quarter's earnings miss. The list avoids fleeting fads, targeting companies with scale and sector control.

The Bigger Picture: A Nod to Tradition in a Disrupted World

In an era of crypto and AI hype, it's almost quaint to see a mega-bank championing old-school stock picks. But let's be real—while decentralized finance builds parallel systems, traditional equity still moves the needle for institutional portfolios. For now.

Final thought: Bank of America's list offers a disciplined, if conventional, roadmap. It's a reminder that in finance, the 'next big thing' often shares a portfolio with the 'last big thing' that's still printing money.

TLDR

• Bank of America released top 10 stock picks for Q1 2026 with nine Buy ratings and one Underperform across nine industries
• Buy-rated stocks include Amazon, Boeing, Cigna, Constellation Energy, Dollar General, Equinix, Merck, Spotify, and Vertex Pharmaceuticals
• Lennar Corp received the sole Underperform rating despite recent homebuilding sector strength
• AI remains a theme through Amazon, Constellation Energy, and Equinix, but Q1 catalysts are diverse including healthcare legislation and tax refunds
• Bank of America warns S&P 500 valuations are expensive but sees opportunities in Health Care, IT, and Real Estate sectors

Bank of America released its top 10 stock recommendations for the first quarter of 2026 on January 2, featuring picks across nine different industries. The list includes nine Buy ratings and one Underperform rating.

Bank of America reveals its Top 10 stock picks for Q1 2026

Amazon $AMZN
Boeing $BA
Cigna $CI
Constellation Energy $CEG
Dollar General $DG
Equinix $EQIX
Merck $MRK
Spotify $SPOT
Vertex Pharmaceuticals $VRTX

AI, healthcare, energy, retail, and infrastructure shape the… pic.twitter.com/K2t3gx0Nt3

— Trader Edge (@Pro_Trader_Edge) January 3, 2026

The Buy-rated stocks are Amazon.com, Boeing, Cigna, Constellation Energy, Dollar General, Equinix, Merck, Spotify, and Vertex Pharmaceuticals. Lennar Corp received the sole Underperform rating on the list.

Strategist Anthony Cassamassino explained the list focuses on companies that could see major market and business-related catalysts in the quarter ahead. The selections span multiple sectors rather than concentrating on a single investment theme.

AI Infrastructure and Diverse Catalysts

Artificial intelligence remains a factor in some selections. Amazon, Constellation Energy, and Equinix all offer exposure to AI-related infrastructure investments.

Amazon.com, Inc., AMZN

However, Bank of America noted the drivers for the broader list are more diverse this quarter. Different companies face unique catalysts specific to their industries and business situations.

For Cigna, the bank expects potential upside from upcoming healthcare legislation. Boeing’s stock performance will likely depend on commercial production rates, which remain a key factor for confidence in the company’s recovery.

Dollar General could benefit from higher-than-expected tax refunds in early 2026. Tax refunds typically boost consumer spending at value retailers during the first quarter.

Dollar General delivered an 80% return over the past year according to InvestingPro data. The company maintains liquid assets that exceed short-term obligations.

Dollar General is trading below its fair value currently. The retailer is scheduled to report earnings on March 12, 2026.

Recent Dollar General Performance

The company reported third-quarter sales of $10.65 billion, meeting analyst expectations. This represented 2.5% growth in comparable sales for the quarter.

Earnings per share reached $1.28, beating Truist Securities’ estimate of $0.96. Multiple analysts raised their price targets following the strong earnings report.

UBS increased its price target to $143 citing traffic growth and margin recovery. Guggenheim raised its target to $140 based on gross margin improvements.

JPMorgan upgraded Dollar General to Overweight with a $166 price target. The upgrade was based on anticipated same-store sales growth supported by store expansion and renovation plans.

Market Valuation Concerns

U.S. Equity Strategist Savita Subramanian warned that the S&P 500 is expensive. Valuations remain stretched even after a strong performance in 2025.

The bank expects a more challenging environment for passive index exposure going forward. However, Subramanian noted opportunities still exist in specific sectors.

Health Care, IT, and Real Estate sectors look particularly attractive in the NEAR term according to Bank of America’s analysis. The firm suggests there is always a bull market somewhere despite broader market concerns.