With the third quarter underway, most of the top firms we cover on Wall Street are releasing their top stock ideas for the next three months. BofA Securities, which we have covered for years, always has 10 new top picks at the start of every quarter. The 10 stocks, nine of which are Buy-rated, and one is Underperform-rated and ostensibly a short sale idea, are out, and we decided to screen the list for the top growth and dividend ideas. With the first full trading week of the third quarter upon us, many investors are seeking safer ideas amid a sustained market rally, even as major indices remain near all-time highs. We have identified four top Bank of America Q3 2026 ideas with significant upside potential and, in some cases, substantial, reliable dividends.
The BofA team remains positive on the stock market and the broader backdrop, as noted in the report:
BofA’s RIC Outlook points to a largely bullish backdrop for the U.S. economy and global equities, with indicators confirming that the “new industrial cycle” remains intact and that earnings momentum is strengthening. The Global Earnings Revision Ratio has improved to a six‑month high, with particularly strong readings in the U.S. and broad-based upgrades across regions, while the Global Wave of macro data is rising in tandem with the earnings cycle—historically a supportive signal for equity returns. Although valuations and positioning suggest markets may be somewhat overheated in the near term, we think any summer pullback could be a potential buying opportunity, especially in real assets, credit, and value-oriented areas.
Why do we cover BofA Securities’ top quarterly ideas?
BofA Securities is one of the top firms on Wall Street, and we have covered the company’s curated stock lists for years. These are their absolute best ideas across several categories, including the Endeavor List, covering small-cap stocks; the Value 10 list, featuring the top analysts’ best value ideas; and the Growth 10 List, a quantitatively generated portfolio of 10 stocks with high expected earnings growth.
Ford
This American automotive corporation was founded in 1903 by Henry Ford and 11 associate investors. This legacy carmaker pays shareholders a robust 4.3% dividend yield. Ford (NYSE: F | F Price Prediction) develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. The BofA team said this about the stock:
We expect continued upward estimate revisions for Ford given: 1) Ford’s primary North America market is better positioned compared to Europe/China given a protectionist trade agenda (no Chinese EV disruption), a favorable regulatory environment given the roll off of emission standards programs that allows Ford to produce its highest margin accretive ICE vehicles, and resilient demand despite higher gas prices, 2) mix benefit from shift to higher margin trims at F Blue, including off-road & V8 trims, 3) Novelis recovery progressing better than expected, 4) outsized growth in F’s high margin software & services business, 5) support from Ford’s new battery energy storage business & the scaling of its new EV platform with the launch of an affordable pickup next year.
It operates through five segments:
- Ford Blue
- Ford Model e
- Ford Pro
- Ford Next
- Ford Credit
The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors, dealers, and dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities through automotive dealers.
In addition, the company provides retail installment sale contracts for:
- New and used vehicles
- Directly finances leases for new cars to retail and commercial customers, including leasing companies, government entities, daily rental companies, and fleet customers
Furthermore, it offers wholesale loans to dealers to finance the purchase of vehicle inventory, as well as loans to fund working capital, enhance dealership facilities, purchase dealership real estate, and support other dealer vehicle programs.
The Bank of America price target is $20.
IBM
International Business Machines (NYSE: IBM), nicknamed Big Blue, is an American multinational technology company. The legacy blue-chip tech giant offers conservative investors a safer way to play the sector with a 2.35% dividend, and with the shares flat this year, some big upside is possible. IBM provides integrated solutions and services worldwide. BofA noted this about the legacy tech giant when discussing the push to quantum computing:
Quantum should become a more visible part of the IBM story as interest increases (given recent pure-play Quantum IPOs). IBM reiterated in F1Q that it remains on track to deliver its first large-scale fault-tolerant quantum computer by 2029 and noted that partners could achieve the first examples of quantum advantage this year using IBM hardware. More recently, IBM and the U.S. Department of Commerce announced an LOI to create Anderon, a standalone U.S. quantum chip foundry supported by a proposed $1bn CHIPS award and a $1bn IBM cash contribution, followed by IBM announcing plans to invest more than $10bn in quantum over the next five years. We view these announcements as material for IBM’s quantum leadership to receive greater attention and as a catalyst for IBM’s quantum business to provide optionality for the stock.
The company operates through four segments. The Software segment offers a hybrid cloud and AI platform that allows clients to realize their digital and AI transformations across the applications, data, and environments they operate. IBM has partnered with Amazon Web Services (AWS) to allow users to access Watsonx AI features and its data platform. IBM also partnered with Palo Alto Networks, allowing the cybersecurity company to acquire IBM’s QRadar Software as a Service (SaaS) assets.
The Consulting segment focuses on integrating skills across strategy, experience, technology, and operations by domain and industry, while the Infrastructure segment provides on-premises and cloud-based server and storage solutions, as well as life-cycle services, for hybrid cloud infrastructure deployments. And the Financing segment offers client and commercial financing that facilitates IBM clients’ acquisition of hardware, software, and services.
The company has a strategic partnership with various companies, including:
- Hyperscalers
- Service providers
- Global system integrators
- Software and hardware vendors, including Adobe, Amazon Web Services, Microsoft, Oracle, Salesforce, Samsung Electronics, SAP, and others
BofA Securities has set a $315 target price.
Visa
The credit card giant was recently removed from Berkshire Hathaway’s portfolio, but the BofA team remains positive on the shares. Visa (NYSE: V) is a global payments technology company that pays a small 0.7% dividend. It facilitates global commerce and money movement across more than 200 countries and territories among consumers, merchants, financial institutions, and government entities through technology.
The BofA team had these thoughts on the shares:
Visa is our top way to own the secular shift from cash to electronic payments: a durable, double-digit revenue/teens-EPS compounder with a wide debit and credit moat, a fast-growing value-added services engine (~30% of net revenue), and $33B of buyback firepower. It trades 3x below its five-year average forward PE, continuing to discount regulatory and disintermediation overhangs that we view as overstated. Visa remains a high-quality franchise at a defensive multiple, poised to be a catalyst-rich window.
Its Payment Services segment provides transaction processing services (primarily authorization, clearing, and settlement) to its financial institution and merchant clients through VisaNet, its proprietary advanced transaction processing network.
The company offers a range of Visa-branded payment products that its clients, including nearly 14,500 financial institutions, use to develop and offer payment solutions or services, including credit, debit, prepaid, and cash access programs for individual, business, and government account holders. It also provides value-added services to its clients, including issuing solutions, acceptance solutions, risk and identity solutions, open banking solutions, and advisory services.
The BofA Securities target price is $410.
Walmart
This company, founded in 1945, is the world’s largest retailer, with over 10,000 stores offering groceries, health products, and general merchandise. Walmart (NYSE: WMT) also has a strong e-commerce platform and a 0.88% dividend. BofA said this about the technology-powered omnichannel retailer:
We remain convinced that the current backdrop, with strength from the upper-income consumer and some caution from the value-seeking consumer, is conducive to Walmart accelerating share gains by leading with price and speed. WMT has significant competitive advantages to invest and gain share due to 1) its ability to tap into high-growth, margin-rich businesses like advertising and membership to help fund pricing investments, and 2) having best-in-class delivery speeds. If middle- and lower-income consumers hold up better than expected, especially as gas prices start to move lower, this would likely strengthen sales trends across Walmart US and Sam’s Club. At 36x P/E (F28), we think the stock could start to rerate higher as the market gets confidence that WMT can return to a beat/raise cycle starting next quarter.
Walmart operates retail and wholesale stores and clubs, as well as e-commerce websites and mobile applications, throughout the United States, Africa, Canada, Central America, Chile, China, India, and Mexico. It operates in three reportable segments.
The Walmart U.S. segment includes the company’s mass merchandising concept in the U.S., as well as eCommerce, which provides omni-channel initiatives and other specific business offerings such as advertising services.
The Walmart International segment consists of the company’s operations outside of the U.S., as well as eCommerce and omni-channel initiatives.
The Sam’s Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
Bank of America has a $140 target price.
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