Bank of America has unveiled its top 10 stock recommendations for the first quarter of 2026, offering investors a diversified playbook across nine different industries. The list features nine buy-rated stocks and one notable sell call, each with specific catalysts that analysts believe could drive near-term performance.

The Buy-Rated Stocks

1. Amazon (AMZN)

Bank of America remains bullish on Amazon, citing the company's dominant position in cloud computing and its expanding AI infrastructure capabilities. AWS continues to gain market share, while the retail business is showing improved margins after years of investment.

Key catalyst: Acceleration in AI-related cloud revenue and continued margin expansion in North American retail.

2. Boeing (BA)

After years of production challenges and regulatory scrutiny, Boeing is positioned for a turnaround. The aerospace giant plans to boost 737 production to 47 planes monthly in 2026, signaling confidence in resolving its manufacturing issues.

Key catalyst: Production ramp-up and improving delivery schedules could restore investor confidence.

3. Cigna (CI)

The healthcare giant benefits from diversified revenue streams across health insurance and pharmacy benefits management. Bank of America notes potential upside from healthcare legislation developments.

Key catalyst: Policy clarity on healthcare reform and continued growth in Evernorth health services.

4. Constellation Energy (CEG)

As the largest producer of carbon-free energy in the United States, Constellation is well-positioned to benefit from growing demand for clean power—particularly from AI data centers that require massive amounts of electricity.

Key catalyst: Data center power contracts and potential extension of nuclear production tax credits.

5. Dollar General (DG)

The discount retailer stands to benefit from the "K-shaped" consumer economy, where value-focused shopping gains market share. After a challenging 2025, Bank of America sees turnaround potential.

Key catalyst: Same-store sales recovery and improved inventory management.

6. Equinix (EQIX)

The data center REIT is a direct beneficiary of AI infrastructure buildout. As hyperscalers expand their computing capacity, Equinix's interconnection-focused facilities remain in high demand.

Key catalyst: Continued data center demand and potential rent increases as capacity tightens.

7. Merck (MRK)

Merck's oncology portfolio, led by Keytruda, continues to drive growth. The pharmaceutical giant also has a robust pipeline of next-generation treatments in development.

Key catalyst: Label expansions for Keytruda and pipeline readouts in 2026.

8. Spotify (SPOT)

The audio streaming leader has demonstrated improved profitability after years of investing in podcasts and new features. Bank of America sees continued margin expansion ahead.

Key catalyst: Price increases sticking with subscribers and advertising revenue growth.

9. Vertex Pharmaceuticals (VRTX)

Vertex's dominant position in cystic fibrosis treatment provides a stable revenue base, while its pipeline offers exposure to emerging therapies including gene editing and pain management.

Key catalyst: Pipeline progress in non-opioid pain treatment and continued CF franchise growth.

The Sell Call

Bank of America's list includes one underperform-rated stock, though the specific name was not disclosed in the public research summary. The firm advises investors to reduce exposure to companies facing structural headwinds or deteriorating competitive positions.

Sector Themes Across the Picks

Several themes emerge from Bank of America's Q1 selections:

  • AI Infrastructure: Amazon, Equinix, and Constellation Energy all benefit from AI-driven demand
  • Healthcare Value: Cigna, Merck, and Vertex represent the firm's overweight stance on healthcare
  • Consumer Resilience: Dollar General and Spotify capture different ends of consumer spending
  • Industrial Recovery: Boeing represents a contrarian bet on manufacturing turnaround

How to Use This Playbook

Bank of America emphasizes that these picks are designed for the near term—specifically Q1 2026. The firm recommends:

  • Catalyst-focused approach: Each stock has specific events that could drive performance
  • Diversification: The picks span nine different industries
  • Active monitoring: Quarterly picks should be reassessed as catalysts play out

Risks to Consider

While Bank of America is constructive on these names, several macro risks could impact all picks:

  • Federal Reserve policy uncertainty as Powell's term ends in May
  • Tariff policy developments that could impact global trade
  • Market valuation concerns following three years of strong gains
  • Potential economic slowdown in the first half of 2026

The Bottom Line

Bank of America's Q1 2026 playbook reflects a balanced approach to the current market environment. By combining AI infrastructure beneficiaries with healthcare value plays and turnaround stories, the firm offers investors multiple ways to potentially outperform.

For those looking to position portfolios for the first quarter, these picks provide a starting point—but as always, individual due diligence and risk assessment remain essential before making investment decisions.