According to a recent research note, Bank of America is betting on a strong first-quarter performance in several stocks trading at fair value or at a discount, even as the S&P 500 index gains. The bank noted that stocks have largely been trading at a premium this year, making it difficult to find suitable investments. “There’s no way to surface that. The S&P 500 is expensive,” Savita Subramanian, U.S. equity strategist at BofA, said in a note Friday. Nevertheless, the bank named 10 stocks that could rise in the first three months of 2026, including Amazon.com, Boeing, and Dollar General. The stocks covered nine industries, including retail, energy, and shipping. These are some of the stocks that made the list. BofA says online retail giant Amazon has significant room to run in 2026, especially as its Amazon Web Services business recovers. Analysts noted that Amazon offers investors exposure to the still-popular artificial intelligence trade, while AWS revenue is likely to accelerate this year. The company plans to pursue quantum computing and custom silicon development projects as part of its efforts in emerging technologies, they said. And much of that effort will be led by Amazon’s recently restructured AI leadership team. “Our thesis is that AWS enters 2026 with significantly better capacity than 2025, which could result in better relative performance and the potential for AWS to outperform market expectations for revenue,” strategist Anthony Cassamassino wrote. BofA is rated Buy on Amazon and has a price target of $303. Amazon’s stock has risen 2.9% over the past year.BofA analysts say a larger-than-expected tax refund could benefit the company’s business, especially in the first quarter, and could lead to Dollar General’s rise. The Dollar Store’s efforts to optimize operations and reduce inventory are working and the company’s earnings should improve next quarter, they said. BofA rates Dollar General stock a buy, with a price target of $160. The stock price has increased more than 80% in the past 12 months. Boeing’s commercial production rate is expected to increase, BofA said. The company noted that Boeing’s commercial aircraft production remains stable and its business performance is improving after a series of accidents forced some airlines to reevaluate their orders to aircraft manufacturers. “Continued stable production is key to building investor confidence and increasing our profile this year,” Cassamassino said in a note. BofA rates the stock “buy” and has a price target of $270 per share. Boeing stock has increased nearly 32% over the past year.
