Lesser-known stocks that can appreciate up to 60% in 1 year, according to analysts

Charlie Taylor

Major US indices have been in the red for much of this year, during which time the S&P 500 and Nasdaq Composite have dropped more than 20% and 24%, respectively. Because of this, investors may be focused on bigger and better-known names in the market, but Bank of America (BAC) believes that some small and medium-sized stocks present good opportunities for investors.

The list, made by a team of BofA strategists led by Jill Carey Hall, contains 26 of the “Best SMBs” of 2022, with an average upside potential of 60% over the next 12 months.

Below are 6 of the best choices cited in the list. Some stocks, with defensible margins and pricing power, have been rewarded in an environment of rising interest rates and high inflation, and are well positioned to thrive in such an environment: The food delivery platform DoorDash (DASH) it is “resistant to food price inflation”. The bank anticipates that margins will improve in 2023, therefore, the share price target is $90, representing a potential increase of 42.9% from the closing price of $63 on Tuesday (21). Leading provider of home medical services Option Care Health (OPCH) it is the “least exposed” to labor cost pressures. The bank also expects the shares to see a bright side for future business as continues to utilize its improved free cash flow, receiving the target price of $38 per share. The aircraft leasing company Air Lease (ALA) can benefit from a recovery in commercial aviation, according to BofA, with the worst of the pandemic now “in the past”. The bank forecasts a price target of $55 per share, an implied increase of 77.4% to the closing price of around $31 on Tuesday. Recession Resistant Stocks Bank of America’s list also includes stocks that are “well positioned to withstand a recession.” The technical consulting company Gartner (IT) is described as a “high quality and defensive” with high sales, margins and earnings. The company enjoys “strong demand” for its services. The $340 price target implies a potential 45.9% increase to the closing price of the stock from around $233 on June 21st. A retailer with high discounts, Ollie’s Bargain Outlet (OLLI)is seen as potential beneficiary of a change in consumer behavior. BofA believes that consumers will face increasing financial pressure with the launch of US government support programs. The bank assigned a target price of $75 to the stock, representing a potential 25% increase to its closing price of around $60 on Tuesday. the electronics manufacturer Jabil (JBL) is another Bank of America favorite. The bank says the company is leveraged for end markets that are seeing secular growth and that are “generally recession-proof.” Bank of America’s target price of $82 on the company’s stock, implying a potential 51.9% increase in the stock price. With Passfolio, you can invest in stocks listed on the US stock exchange, meet the broker today and create your account.

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