The S&P 500 followed up an impressive 2025 with more strong gains in the first half of 2026. The S&P 500 gained 9.6% in the first two quarters of the year despite investor concerns over stubborn inflation, the sustainability of the artificial intelligence investment boom and geopolitical instability in the Middle East.
Technology stocks and energy stocks have outperformed so far this year. The Nasdaq-100 gained 19.9% in the first half, while the Dow Jones Industrial Average gained 8.9%.
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Despite the strong overall returns, investors rotated out of some mega-cap Silicon Valley stocks in the first two quarters of the year. Sell-offs in stocks such as Meta Platforms Inc. (ticker: META) and Netflix Inc. (NFLX) made the communications services sector the worst-performing S&P 500 sector in the first half.
Heading into the second half of 2026, investors now believe there’s a good chance the Federal Reserve could be forced to raise interest rates to combat inflation. Fortunately, the New York Fed’s recession probability model estimates there’s only a 16% chance of a U.S. recession within the next 12 months.
In a volatile and unpredictable market, Bank of America recently named the following five stocks among its top picks to buy in the third quarter and beyond:
| Stock | Implied upside* |
| Visa Inc. (V) | 15% |
| Walmart Inc. (WMT) | 25% |
| Spotify Technology SA (SPOT) | 43% |
| Ford Motor Co. (F) | 44% |
| Ionis Pharmaceuticals Inc. (IONS) | 96% |
*From July 13 closing price.
Visa Inc. (V)
Visa is a global credit card leader and owner of the world’s largest electronic payment network.
Analyst Matthew C. O’Neill says Visa is the best way for investors to play the ongoing secular shift in the global economy from cash to electronic payments. O’Neill says Visa has a wide competitive moat and the potential to maintain double-digit revenue growth and annual earnings per share growth in the mid-teens percentage range for the foreseeable future. In addition, he says the stock is attractively valued, trading well below its historical forward earnings multiple.
“Visa remains a high-quality franchise at a defensive multiple [heading] into a catalyst-rich window,” O’Neill says.
In the near term, he says World Cup travelers likely boosted cross-border travel and entertainment spending in June and July, numbers that will show up in Visa’s second- and third-quarter earnings reports.
Bank of America has a “buy” rating and $410 price target for V stock, which closed at $357.75 on July 13.
Walmart Inc. (WMT)
Walmart is the largest U.S. retailer, operating department stores, wholesale clubs, supermarkets and supercenters around the world.
Analyst Christopher Nardone says Walmart’s ability to quickly adapt to changing market conditions and undercut competitors on pricing will allow the discount retail giant to gain market share in a difficult environment for consumers in the second half of 2026. Nardone says Walmart has best-in-class delivery speeds and the ability to leverage high-margin, high-growth businesses such as membership programs and advertising.
“If the middle/lower income consumer holds up better than expected, especially as gas prices start to move lower, this would likely strengthen sales trends across Walmart U.S. and Sam’s Club,” he says.
In the next two quarters, Nardone is anticipating ongoing momentum from top-performing categories such as beauty, fashion and home.
Bank of America has a “buy” rating and $144 price target for WMT stock, which closed at $114.78 on July 13.
[Read: 7 Up-and-Coming Stocks to Buy Now]
Spotify Technology SA (SPOT)
Spotify is the largest independent music streamer for both subscription and ad-supported accounts. In recent years, it has also expanded into podcasts and other forms of audio content.
Analyst Jessica Reif Ehrlich says Spotify is undergoing a clear strategic shift from focusing on user growth to prioritizing monetization and engagement by pricing adjustments, segmentation and higher-value experiences.
“We now see even greater clarity for continued profit and [free cash flow] growth, including long subscriber net add runway, price increases, new tiers (including the recently announced AI-driven music remix tier), advertising ramp, [and] further penetration of incremental services including podcasting, audiobooks and fitness,” Ehrlich says.
In fact, Spotify is her top pick in the entire media and entertainment industry in the second half of 2026. She is particularly bullish on the positive impact the platform’s new AI-driven music subscription tier could have on user monetization.
Bank of America has a “buy” rating and $685 price target for SPOT stock, which closed at $479.84 on July 13.
Ford Motor Co. (F)
Ford is one of the world’s largest vehicle manufacturers, producing automobiles under its Ford and Lincoln brands. Its leading vehicle models include its F-Series full-sized trucks, its Explorer SUVs and its Transit commercial vans.
Analyst Alexander Perry says Ford’s focus on the North American market positions the company to benefit from the Donald Trump administration’s protectionist trade agenda regarding China and Europe. Perry says product mix improvements could also be a bullish catalyst for the stock in the second half of the year.
“We think Ford should see a continued mix benefit as production shifts toward higher-margin trims, including the Ranger Raptor, Explorer Tremor and potentially higher V8 penetration on the F-150,” Perry says.
Finally, he says Ford will likely soon become a credible competitor in the emerging battery energy storage system (BESS) market.
Bank of America has a “buy” rating and $20 price target for F stock, which closed at $13.85 on July 13.
Ionis Pharmaceuticals Inc. (IONS)
Ionis Pharmaceuticals is a leading biotechnology company developing unique antisense oligonucleotide therapeutics. Ionis developed spinal muscular atrophy drug Spinraza, which is marketed by partner Biogen.
The company’s other major commercial drugs include Tryngolza for treating familial chylomicronemia syndrome (FCS) and Wainua for treating hereditary transthyretin-mediated amyloidosis polyneuropathy (ATTRv-PN) in adults. Tryngolza is wholly owned by Ionis, and Wainua is co-commercialized with partner AstraZeneca.
Analyst Jason Gerberry says Ionis’ stock has a very favorable risk-reward skew ahead of what will be a catalyst-rich second half of 2026. Gerberry is bullish on the second-half commercial launch of Tryngolza for treating severe hypertriglyceridemia (sHTG) and is not too concerned about competitor Arrowhead Pharmaceuticals’ Redemplo.
“We see sHTG as a large market (~$6bn US) that can accommodate both companies, and we model a split market share between Tryngolza and Redemplo ($3bn peak each),” Gerberry wrote in an analyst note.
Bank of America has a “buy” rating and $111 price target for IONS stock, which closed at $56.75 on July 13.
[Read: 9 Best Growth Stocks for the Next 10 Years]
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5 Good Stocks to Buy for the Second Half of 2026 and Beyond originally appeared on usnews.com
Update 07/14/26: This story was published at an earlier date and has been updated with new information.
