Bank of America's Top Stocks for 2026

Bank of America's Favorite Stocks for 2026

Bank of America (BofA) expects several stocks that will trade below their fair value in 2026 to perform well, despite the S&P 500 index becoming more expensive. BofA’s U.S. Equity Strategist, Savita Subramanian, said, "The S&P 500 is expensive; however, we believe investors can still find the right opportunities.”

Target Views by Sector

BofA analysts predict that certain stocks in the retail, energy, and technology sectors will show notable performance in 2026.

• Constellation Energy (CEG): According to BofA, the online retail sector has significant growth potential, particularly with Amazon Web Services (AWS). Analysts indicate that AWS revenues are expected to accelerate by 2026, and the company will continue its new technology initiatives. Anthony Cassamassino stated, "We expect AWS to enter 2026 in a better capacity position." BofA has assigned a "BUY" rating and a target price of $303 for the stock.
• Dollar General (DG): BofA believes Dollar General will benefit from higher-than-expected tax refunds and could increase its profits in the first quarter. For the stock, which gained 80% in value last year, a "BUY" rating and a target price of $160 are forecasted.
• Boeing (BA): Boeing's production rates for commercial aircraft are expected to increase. BofA noted that various adverse events have forced some airlines to reconsider their orders, emphasizing that production stability is important for investor confidence. The stock is under coverage with a "BUY" rating and a target price of $270.

BofA's analyses indicate that these stocks have the potential to perform strongly despite challenging market conditions. However, the current information does not constitute investment advice.