Bank of America Updates “US 1” List of Top Stock Picks

Bank of America updated its “US 1” list of top stock picks, adding 11 names in August amidst market volatility. The adjustments reflect changes in economic conditions, including lower interest rates and expectations for a Federal Reserve rate cut, prompting BofA’s analysts to reevaluate their stock selections.

The US 1 Committee made a number of changes to the list in August. It’s worth noting that while the Committee believes these new stocks fit with the current investing backdrop, stocks are added to and removed from the US 1 list because of their individual attributes.

Among the new additions are:
– Uber Technologies (NYSE:UBER): Highlighted as one of the fastest top- and bottom-line growers in the Internet sector, driven by strong traction in new verticals and expanding market share. Analysts expect Uber to achieve over $10 billion in free cash flow by 2026.
– Eli Lilly (NYSE:LLY): Recognized for its strong competitive position in the growing obesity market, with expansion into areas like sleep apnea and liver disease expected to drive continued growth. Despite a higher valuation, BofA believes Lilly’s earnings will outpace peers.
– Chipotle Mexican Grill (NYSE:CMG): Noted for having the industry’s highest margins, with significant growth potential despite a slowdown in the consumer environment.

Other additions include:
– Northrop Grumman (NYSE:NOC): Defense contractor believed to be well-positioned.
– Mid-America Apartment Communities (NYSE:MAA): A real estate investment trust with strong market positioning.
– American Healthcare REIT (AHR)
– Duolingo (DUOL)
– McCormick & Co (NYSE:MKC)
– NVR Inc. (NYSE:NVR)
– RenaissanceRe (NYSE:RNR)
– RTX Corp (RTX)

These stocks were selected based on their individual strengths, reflecting Bank of America’s belief that they can thrive despite economic uncertainty.