This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Bank of America is a formidable financial titan with a $3.5 trillion balance sheet and a cornerstone of the American economy, holding the second-largest deposit market share in the United States. While the firm has maintained its stronghold among middle-market and retail clientele domestically, Bank of America has continued to hold its own on the global stage, as evidenced by its fourth-largest global trading operation and an investment banking division that regularly finishes in the top four in global league tables. The firm is organized across four segments: consumer banking, global wealth and investment management, global banking, and global markets.

Bank of America is a formidable financial titan with a $3.5 trillion balance sheet and a cornerstone of the American economy, holding the second-largest deposit market share in the United States. While the firm has maintained its stronghold among middle-market and retail clientele domestically, Bank of America has continued to hold its own on the global stage, as evidenced by its fourth-largest global trading operation and an investment banking division that regularly finishes in the top four in global league tables. The firm is organized across four segments: consumer banking, global wealth and investment management, global banking, and global markets.

The Fed again has taken a tightening stance for monetary policy. Policymakers lifted the fed funds target range to 3.75%-4% last week — and history suggests that more rate hikes are coming. Ahead of the rate move last week, Argus Fed Watcher Kevin Heal changed his forecast to two rate increases of 25 basis points each before the end of 2026. His rationale is that employment is surprisingly healthy while inflation has been obstinate and the bond market has agita. We do not expect that two rate hikes will derail earnings growth or stunt innovation. Kevin says that two increases should keep the Fed from falling out of step if inflationary shocks persist, while not over-medicating the economy if inflation moderates. In sum, the economy is still strong and the Fed is doing its job by trying to keep inflation in check. Given the return to tightening monetary policy, we are looking at industries and companies that can do well during a period of higher interest rates. All of the following stocks carry Argus BUY ratings.