3 stocks with growth potential even in times of market volatility according to Bank of America

The stock market is currently experiencing a wave of volatility, with recent price fluctuations causing investors to worry. The S&P 500 reached a new record high last month, but has been on a downward trend ever since. With the release of key economic indicators coming this week, investors remain uncertain whether the economy is headed into recession or whether the Federal Reserve will cut interest rates again.

Despite this uncertainty, analysts at Bank of America remain optimistic about the performance of some stocks, which they believe have the potential to grow by tens of percent. Here are three stocks that could deliver significant gains over the next year, despite the current market uncertainty.

Robinhood Markets $HOOD

In times of market volatility, Robinhood Markets may have the edge. That's because as an online brokerage firm, it benefits from active trades from investors who are trying to gain an edge in a volatile market. Robinhood makes money not through commissions on trades, but through "payments for order flow," a system where trades are routed through a market maker.

Robinhood has shown strong growth recently, reporting second quarter earnings of 21 cents per share, well ahead of the 15 cents expected. Bank of America analyst Craig Siegenthaler raised his price target for Robinhood stock to $32 per share, up from the original $28. Siegenthaler believes Robinhood will continue to benefit from its model and its growing market share, making it a strong performer.

Day One Biopharmaceuticals $DAWN

Day One Biopharmaceuticals is attracting analyst attention due to strong growth of its first approved drug, Ojemda, which treats pediatric low-grade glioma (PLGG), the most commonly diagnosed pediatric brain tumor. Although the drug generated only $8.2 million in early days, the company sees it as a promising start. In addition, Day One sold a $108 million priority review vehicle (PRV), which may accelerate approval of other drugs.

Bank of America analyst Alec Stranahan upgraded Day One stock to "buy" from "underperform" and more than doubled his price target from $11 to $24 per share. While that represents more than 70% upside, other analysts are even more optimistic, with price targets as high as $40 per share. This growth potential makes Day One an attractive stock for investors looking for opportunities in the biotech sector, especially as the first drug continues to perform well.

Nextracker $NXT

Nextracker is a leader in solar energy, specializing in smart solar panel tracking systems. These systems optimize the efficiency of solar panels by tracking the sun's path across the sky. As the world increasingly transitions to renewable energy, Nextracker is well positioned to take advantage of the growing demand for solar energy infrastructure, especially in commercial-scale projects.

Bank of America analyst Dimple Gosai recently reiterated a Buy rating on Nextracker stock and raised his price target to $66 per share from $64. Nextracker reported strong financial results, with net sales up 50% and adjusted earnings nearly doubling to $139 million. Still, the stock is down 17% since the results, making the stock even more attractive to investors who believe in its long-term growth in the solar sector.

Disclaimer: There is plenty 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.

Source: Yahoo Finance.