Because the second quarter kicks off, Financial institution of America believes that shares similar to Meta Platforms and Spotify are positioned to outperform. The primary quarter was marked with macroeconomic uncertainty and geopolitical volatility, characterised by ramping tensions within the Center East. The S & P 500 jumped to start April’s buying and selling and the second quarter, however it’s nonetheless down 3.8% in 2026. On Wednesday, Financial institution of America detailed its high high-conviction, short-term, buy-rated U.S. shares for the second quarter, saying that it was “going lengthy available on the market pullback.” The record of concepts is predicated on the financial institution’s view “that these shares may have vital market and business-related catalysts within the quarter forward.” Financial institution of America publishes the record at first of every quarter. Shares are meant to remain on the record for the interval, though some could also be chosen once more for the subsequent quarter’s basket. Choose names from Financial institution of America’s most up-to-date record are proven within the desk beneath: One title on the record was “Magnificent Seven” big Meta. The social media big not too long ago suffered two key losses in court docket involving baby security. The inventory is down virtually 13% in 2026. Nevertheless, the financial institution’s $885 value goal implies that the inventory may surge about 54% from its Thursday shut. Analyst Justin Submit mentioned that Meta’s current pullback has now created a sexy alternative for traders. “Within the near-term, whereas litigation headline danger may persist, we do not count on a cloth impression on the corporate’s income progress or profitability, because the authorized and appeals course of is more likely to take a number of years to play out,” he wrote. “We predict present valuation underappreciates the AI alternative for Meta, together with the tangible advantages AI is already driving throughout Meta’s core promoting enterprise.” Audio streamer Spotify, down virtually 16% this 12 months, was one other title on the record. Financial institution of America’s $750 value goal corresponds to an upside of 53% for the inventory. Analyst Jessica Reif Ehrlich wrote that Spotify was the financial institution’s high choose within the media and leisure area, and referred to as fears of AI disruption across the title overdone. “We see a number of drivers for continued revenue and [free cash flow] progress together with lengthy subscriber internet add runway, value will increase, promoting ramp, additional penetration of incremental providers together with podcasting and audiobooks with extra doubtless on the way in which,” Ehrlich wrote. “We view SPOT’s current volatility as a very engaging shopping for alternative because the considerations of AI disruption seem overblown, significantly within the near-to-medium time period.” Financial institution of America additionally listed peer financial institution Citigroup as one other title on the record. Analyst Ebrahim Poonawala’s $140 value goal implies that shares of Citigroup may add 21%. “We predict Citigroup is properly positioned to outperform into the primary quarter earnings print and its investor day on Could 7,” Poonawala wrote. Different shares featured in Financial institution of America’s record of high concepts included Thermo Fisher , MongoDB , Amer Sports activities and Boot Barn .
