Bank of America says these 3 stocks have huge upside potential

In the current period, when stock markets are experiencing considerable volatility and investor nervousness, analysts believe that several opportunities are emerging that could bring significant gains.

After the recent record-breaking rise of the S&P 500 index, which subsequently saw a decline of a few percent, investors are trying to gauge whether the economy is heading into a recession or whether the Federal Reserve is considering cutting interest rates. In these uncertain times, however, analysts at Bank of America see three specific stocks that have the potential to rise significantly. These stocks aren't just speculative investments; they are expected to rise an average of 72% over the next twelve months. Let's take a look at the reasons why these stocks are considered opportunities you shouldn't overlook.

Robinhood Markets $HOOD

Market volatility can be a boon for online broker Robinhood Markets. While Robinhood doesn't charge commissions for trading, it generates revenue through order payments and increasing trading volume. In the second quarter, the firm reported strong results with earnings of 21 cents per share, which beat analysts' expectations. Robinhood shares are up 58% year-to-date and should still have 72% upside potential, according to analysts. Bank of America expects the company to continue to benefit from increased trading volume and market share gains.

Day One Biopharmaceuticals $DAWN

Biotechnology firm Day One Biopharmaceuticals received a high buy recommendation from Bank of America. Analysts raised their target price on the stock from $11 to $24 per share after the company reported success with its first approved drug, Ojemda, designed to treat pediatric low-grade glioma. While initial sales were relatively modest, the results and the $108 million priority review voucher sale show the company's strong potential. Analysts at Bank of America expect DAWN stock to rise 77%, but other analysts estimate growth as high as $40 per share.

Nextracker $NXT

Nextracker, a leader in intelligent tracking systems for solar panels, has shown strong performance with net sales growth of 50%. Despite the current stock price dropping 17% since the last report, analysts at Bank of America view the stock as an attractive opportunity with a target price of $66 per share. With the growing demand for solar technology in both the U.S. and international markets, Nextracker represents an interesting investment with the potential to grow by as much as 67%.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

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