As the second quarter kicks off, Bank of America believes that stocks such as Meta Platforms and Spotify are positioned to outperform. The first quarter was marked with macroeconomic uncertainty and geopolitical volatility, characterized by ramping tensions in the Middle East. The S & P 500 jumped to begin April’s trading and the second quarter, but it’s still down 3.8% in 2026. On Wednesday, Bank of America detailed its top high-conviction, short-term, buy-rated U.S. stocks for the second quarter, saying that it was “going long on the market pullback.” The list of ideas is based on the bank’s view “that these stocks could have significant market and business-related catalysts in the quarter ahead.” Bank of America publishes the list at the beginning of each quarter. Stocks are intended to stay on the list for the period, although some may be chosen again for the next quarter’s basket. Select names from Bank of America’s most recent list are shown in the table below: One name on the list was “Magnificent Seven” giant Meta. The social media giant recently suffered two key losses in court involving child safety. The stock is down almost 13% in 2026. However, the bank’s $885 price objective implies that the stock could surge about 54% from its Thursday close. Analyst Justin Post said that Meta’s recent pullback has now created an attractive opportunity for investors. “In the near-term, while litigation headline risk could persist, we don’t expect a material impact on the company’s revenue growth or profitability, as the legal and appeals process is likely to take multiple years to play out,” he wrote. “We think current valuation underappreciates the AI opportunity for Meta, including the tangible benefits AI is already driving across Meta’s core advertising business.” Audio streamer Spotify, down almost 16% this year, was another name on the list. Bank of America’s $750 price target corresponds to an upside of 53% for the stock. Analyst Jessica Reif Ehrlich wrote that Spotify was the bank’s top pick in the media and entertainment space, and called fears of AI disruption around the name overdone. “We see multiple drivers for continued profit and [free cash flow] growth including long subscriber net add runway, price increases, advertising ramp, further penetration of incremental services including podcasting and audiobooks with more likely on the way,” Ehrlich wrote. “We view SPOT’s recent volatility as a particularly attractive buying opportunity as the concerns of AI disruption appear overblown, particularly in the near-to-medium term.” Bank of America also listed peer bank Citigroup as another name on the list. Analyst Ebrahim Poonawala’s $140 price objective implies that shares of Citigroup could add 21%. “We think Citigroup is well positioned to outperform into the first quarter earnings print and its investor day on May 7,” Poonawala wrote. Other stocks featured in Bank of America’s list of top ideas included Thermo Fisher , MongoDB , Amer Sports and Boot Barn .
