Bank of America anticipates market volatility will pick up in 2022, and the firm has called out its top stock picks to weather the first quarter. "Perhaps the most consensus macro view at the moment is that volatility will be elevated in the current quarter and for the year ahead. While volatility creates potential opportunities it also necessitates a more selective approach to stock picking," said Anthony Cassamassino, an equity strategist at Bank of America. The Wall Street firm sees the S & P 500 falling to the 4,600 level this year, or roughly 3.5% decline from the current. Still, the strategy team is bullish on stocks with strong free cash flow and inflation-proof yields. To capitalize on these trends, Bank of America published a list of buy-rated stocks for the first quarter. The firm will run the list at the start of every quarter in 2022. Take a look at the list here: Bank of America analyst Ebrahim Poonawala said Citigroup is at an inflection point following a decade of lackluster shareholder returns. "For a stock trading well below [tangible book value], with a couple of attractive businesses (corporate investment bank, transaction services), we see the risk/reward as compelling," said Poonawala. The firm has a $100 per share price target on Citigroup, which closed at $60.39 on Dec. 31. Bank of America also likes home appliance company Carrier Global , which should benefit from increased demand for indoor air quality from the Covid-19 pandemic. The firm has a $70 per share price target on Carrier Global. It ended the year at $54.24. The firm said CrowdStrike , which has underperformed since November, continues to increase market share in the cybersecurity sector. "The company continues to deliver better-than-expected results, which are driven by continued legacy displacements, zero trust adoption, and migration to cloud," said Tal Liani, an analyst at Bank of America. The firm has a $315 per share price target on CrowdStrike. It closed at $204.75 on Dec. 31. Rexford Industrial is another top pick for the first quarter of 2022. The company operates warehouses in Southern California. "These markets benefit from historically strong tenant demand and rent growth, and all-time low market vacancy," said Bank of America analyst James Feldman. "Robust demand continues as tenants seek warehouse space to build out e-commerce distribution platforms, grow inventories to prevent future supply chain disruption, and expand with the economy." Bank of America has a $90 per share price target on Rexford Industrial. Shares closed at $81.11 on Dec. 31. CNH Industrial , Lamb Weston , Occidental Petroleum , ViacomCBS and Xcel Energy also earned spots on Bank of America's list. — with reporting from CNBC's Michael Bloom.
CrowdStrike IPO at the Nasdaq exchange June 12, 2019.
Bank of America anticipates market volatility will pick up in 2022, and the firm has called out its top stock picks to weather the first quarter.