Investing.com -- Bank of America (NYSE:BAC) updated its "US 1" list of top stock picks, revealing in a note Thursday that it added 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, which have prompted 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," explained BofA.
Among the new additions are Uber Technologies (NYSE:UBER), Eli Lilly (NYSE:LLY), and Chipotle Mexican Grill (NYSE:CMG) (CMG), all seen as promising investments in a shifting market.
BofA analysts highlighted Uber as "one of the fastest top- and bottom-line growers in the Internet sector," driven by strong traction in its new verticals and expanding market share. They expect Uber to achieve over $10 billion in free cash flow by 2026.
Eli Lilly, a major player in the healthcare sector, was chosen for its strong competitive position in the growing obesity market.
BofA expects the company's expansion into areas like sleep apnea and liver disease to provide continued growth. Despite its higher valuation, the bank believes Lilly's earnings will outpace its peers.
Chipotle's "room to grow" was another draw, with the restaurant chain maintaining the industry's highest margins despite a slowdown in the consumer environment.
Other names on the list include defense contractor Northrop Grumman (NYSE:NOC) and real estate investment trust Mid-America Apartment (NYSE:MAA) Communities (MAA), which BofA believes are well-positioned for the current market environment. American Healthcare REIT (AHR), Duolingo (NASDAQ:DUOL), McCormick & Co (NYSE:MKC), NVR Inc . (NYSE:NVR), RenaissanceRe (NYSE:RNR), and RTX Corp (NYSE:RTX) were the other names added to the list in August.
These stocks were selected based on their individual strengths, reflecting Bank of America's belief that they can thrive despite economic uncertainty.