7 stocks ready to rise up to 125% in a short time (according to BofA)

Bank of America has identified 7 stocks ready to rise up to 125% in a short time.
In a constantly growing stock market, where the highs of the S&P 500 Index are constantly being surpassed, investors are looking for opportunities that promise significant and fast returns.
The Federal Reserve's recent decision to maintain a gradual rate cut policy through 2024 has generated strong optimism among market participants, fueling the search for stocks with high growth potential.
With the Fed recognizing the strength of the US economy and forecasting GDP expansion of 2.1% in 2024, the majority of investors are looking to the future with confidence, creating a favorable environment for sectors with high growth potential.
Let's now discover the details of the 7 stocks selected by Bank of America, based on the growth prospects and opportunities offered by the US stock market.
1) Broadcom (AVGO) Broadcom is among BofA's favorite stocks, in light of the prospects in the artificial intelligence sector.
The enthusiasm is also confirmed by TD Cowen experts who recently highlighted several positive factors for the stock.
These include the program's expansion into custom silicon, which could significantly boost networking segment revenues.
Additionally, the VMware deal could lead to surprising growth and operating expense synergies.
According to analysts, Broadcom shares could outperform the market, with a target price of $1,500.
In addition, other Wall Street analysts highlight how Broadcom could soon become a world leader in the AI networks sector: at this moment the share price does not fully reflect its potential in this area.
2) Occidental Petroleum (OXY) Occidental Petroleum is another stock that BofA believes has significant growth potential.
Occidental's recent financial performance reflects its resilience, with a gross profit margin of 60.07% despite a revenue decline of 22.87%.
The company reported earnings per share (EPS) of $0.74 in its latest quarter, maintaining a solid net margin of 16.24% and return on equity of 20.63%.
Despite current challenges, Occidental Petroleum remains a significant player in the energy sector, with a market capitalization of $56.69 billion and shares trading near a 52-week high.
The company's financial strategy aims to reduce its debt, with the aim of cutting more than $14 billion through a combination of free cash flow and asset sales.
The acquisition of CrownRock, expected by September 30, is a significant step towards this goal and has led Mizuho to raise its price target for OXY shares to $69, while maintaining a Neutral rating.
With a focused financial strategy and strong financial performance, the company could offer potential appreciation opportunities for long-term value-conscious investors.
3) Arch Capital Group (ACGL) Arch Capital Group is an insurance company founded in 1995 based in Pembroke, Bermuda, and is a global leader in insurance, reinsurance and mortgage insurance.
Bank of America has identified Arch Capital as one of the companies with the greatest growth prospects in the insurance sector thanks to the Fed's policy.
The company operates in three main segments: Insurance, Reinsurance and Mortgage, offering a wide range of insurance and reinsurance products.
The revenue increase of 32.2% (as of September 30, 2023) highlights the company's financial strength and growth potential.
While some financial indicators highlight challenges, such as a lower ROE and ROA than the industry average, ACGL exhibits solid debt management, with a below-average debt-to-equity ratio.
However, Bank of America's report focuses on the upside potential of ACGL stock in the context of a favorable market, offering investors an opportunity to participate in the growth and success of this solid insurance company.
4) Comcast (CMCSA) Comcast is the largest cable operator in the United States, as well as the third-largest provider of domestic telephone service and a major global media industry.
Recently, Comcast Corporation's board of directors announced a dividend increase, bringing the annual payout to 2.9% of the current stock price.
This strengthens Comcast's position as an attractive stock for investors seeking consistent returns in the telecommunications and media sector.
The analysis of Comcast's upside potential is based on its strong dividend coverage, with a payout ratio expected at 27% by next year, supported by an expected EPS increase of 27.3%.
This highlights the company's ability to generate profits sustainably and reinvest them to support future growth.
Additionally, Comcast's track record of paying dividends, with a consistent increase of 12% annually since 2014, reflects stability and confidence in the company's future potential.
Despite the growing numbers, JP Morgan analysts are more cautious and set a target price of $49 with a hold rating.
Despite the near-term challenges, Comcast remains an attractive stock for investors seeking growth opportunities in the telecommunications and media sector.
Looking at the long-term chart, we notice a static resistance in the area of around $47.40.
Only the breaking of this limit can avoid the start of a bearish lateral phase aimed at a new test of the lows at the end of 2022 in the $30 area.
read also Financial earthquake coming? Pay attention to 5 factors 5) Progressive Corporation (PGR) Progressive Corporation is an insurance holding company with excellent growth prospects according to BofA.
Recently, Evercore analysts also raised their estimates on the stock, bringing the target price to $215 from $203 and maintaining an Outperform rating.
The revision was motivated by improvements in auto insurance underwriting and a modest reduction in the expense ratio, which contributed to an increase in earnings per share (EPS) estimates of 3-4%.
The growth in auto insurance subscriptions is a strong point for the company, despite a recent decline in performance.
The company plans to gradually increase advertising spending starting in March, taking advantage of the difficult market conditions to optimize marketing efficiency and support the increase in active policies (PIF).
The new price target of $215 reflects a positive view on the company's ability to maintain its growth trend.
This improved outlook also led to Citigroup raising its price target from $192 to $202, while maintaining a Neutral rating on the insurance company's shares.
6) Everest Group (EG) Everest, a global leader in reinsurance, property and casualty insurance, is among BofA's favorite stocks.
Everest's quarterly results, released on February 7, beat analysts' estimates, with earnings per share of $25.18 and a net margin of 17.26%.
Despite a decline in revenue compared to forecasts, the company reported an increase of 12.4% compared to the same quarter last year.
Analysts expect earnings per share of $62.03 for the current year.
Everest will reveal first-quarter 2024 results on April 30, with an average recommendation of “Moderate Buy” from seven investment banks.
The average 1-year price target is $434.67 indicating upside potential according to market valuations.
7) TransDigm (TDG) TransDigm is the latest stock under BofA's lens.
With earnings per share (EPS) of $7.16 in the quarter, the aerospace company surprised experts, posting a net margin of 20.80% and revenue of $1.79 billion.
These results have fueled analyst optimism, with some recent upward revisions to second-quarter 2025 earnings per share estimates.
TransDigm is expected to post earnings of $8.18 per share next quarter, marking an increase from previous predictions.
Consensus estimates for TransDigm's current full-year earnings are $28.98 per share.
Zacks Research has also released projections for future earnings, with estimates indicating solid growth potential.
With these positive developments, analysts view TransDigm's future favorably, bolstering confidence in its upside potential in the aerospace sector.
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