8 S&P 500 Stocks to Buy With the Most Upside

Analysts forecast significant growth for these S&P 500 stocks.

Bank of America sees at least 80% upside for these stocks.

The S&P 500 has had a bad 2022 so far, down 23% as of September 27. Investors seek out strategies to outperform the market more often when the S&P 500's performance declines. Stocks with the greatest potential for growth often carry greater risk. Some investors, however, might be eager to seize purchasing opportunities within the down market. Although the S&P 500's future remains unknown, analysts believe certain of their top-rated stocks have a considerable upside. According to Bank of America analyst price estimates, the eight S&P 500 stocks with the greatest potential for growth are shown below.

General Motors Co. (ticker: GM)

One of the biggest automakers in the world is GeneralMotors. However, according to analyst John Murphy, GM's recent decision to reinstate its dividend and increase its stock buyback programme from $3.3 billion to $5 billion is a sign that the company's management believes conditions are improving. The auto industry is still struggling with supply chain disruptions. According to Murphy's forecast, GM will produce nearly $8 billion in free cash flow this year, and the company has vowed to invest more than $35 billion on electric and autonomous vehicle technology by the year 2025. The GM stock, which ended on September 27 at $34.71, has a "buy" rating and a $90 price target from Bank of America.

Ford Motor Co. (F)

The second-largest manufacturer of vehicles and trucks in the US is Ford. It recently announced measures to reorganise its supply chain and expects third-quarter supplier costs of about $1 billion. Ford's revelation, according to Murphy, is rather unexpected considering recent reports that the industry's supply chain circumstances are generally improving. Murphy claims that despite the unexpected setback, he anticipates Ford will recover in the fourth quarter and beyond. Ford stock offers a tempting 4.9% dividend, the highest of any stock on this list, which is another perk. F stock, which closed at $11.91 on September 27, has a "buy" rating and a $28 price target from Bank of America.

BorgWarner Inc. (BWA)

BorgWarner is a well-known provider of drivetrain components for cars as well as other auto parts and systems. As of September 27, 2022, BorgWarner's stock is down 25%, making it the best-performing stock on this list. BorgWarner is a top-tier auto supplier, according to Murphy, with a diverse range of next-generation powertrain products for internal combustion engines, hybrid electric vehicles, and battery-operated vehicles. Murphy believes that although BorgWarner management has done a remarkable job of executing and adjusting to the changes in the auto sector, the situation for auto suppliers remains tough. The BWA stock, which ended on September 27 at $33.28, has a "buy" rating and a $75 price target from Bank of America.

Caesars Entertainment Inc. (CZR)

A U.S. hotel and casino firm called Caesars Entertainment owns or manages more than 50 properties, including Caesars Palace in Las Vegas. According to analyst Shaun Kelley, Caesars Digital's development was a big factor in the company's second-quarter revenue exceed and the Las Vegas casino market has recovered well in 2022. In 2023, Kelley predicts a return to profitability as well as positive sales growth. The worst-performing stock on this list, Caesars shares have been struck particularly hard in 2022, down 64.8% as of September 27. The CZR stock, which ended on September 27 at $32.94, has a "buy" rating and a $75 price target from Bank of America.

Warner Bros. Discovery Inc. (WBD)

A new entertainment firm called Warner Bros. Discovery was created earlier this year through the union of Discovery Inc. and WarnerMedia, which was formerly controlled by AT&T Inc. (T). On its first day of trading in April, WBD opened at roughly $24 per share. However, due to intense selling pressure, the share price has since dropped to less than half that amount. Large mergers' initial financial commotion and market turbulence, according to analyst Jessica Reif Ehrlich, might present long-term investors with buying opportunities. WBD stock, which ended at $11.32 on September 27, has a "buy" rating and a $23 price target from Bank of America.

Dish Network Corp. (DISH)

One of the two biggest satellite TV providers in the US is Dish Network. According to analyst David Barden, Dish is expanding its wireless business and has valuable airwaves that it can use or sell. Unfortunately, Barden estimates that Dish will require at least $10 billion in funding to support its investments in 5G networks and set itself apart in a crowded wireless market. Additionally, the number of pay TV subscribers is steadily declining. If Dish can convert its wireless investments into cash flow, according to Barden, the stock might see huge gains. DISH stock, which closed on September 27 at $14.13, gets a "buy" rating and a $30 price target from Bank of America.

Aptiv PLC (APTV)

The leading provider of automobile parts is Aptiv. It is one of several auto and auto supplier stocks with strong valuation potential, according to Murphy. Due of its exposure to industry mega-trends like autonomy, electrification, and connectivity, according to Murphy, Aptiv is well positioned. According to him, these demand trends should aid Aptiv in achieving above-average sales and earnings growth in comparison to its competitors. According to Murphy, Aptiv is actually one of the best auto companies based on a variety of criteria, such as execution, margins, and cash flow. For APTV, which closed on September 27 at $83 and has a "buy" rating and a $158 price target from Bank of America,

Western Digital Corp. (WDC)

The storage products and services produced by Western Digital are utilised in data centres, mobile devices, and desktop PCs. Softening demand and inventory adjustments are short-term challenges for Western Digital, according to analyst Wamsi Mohan. However, due to the continued ramp-up of 18- and 20-terabyte drives, the company's near-line hard drive revenue increased by 7% in the fourth quarter of its fiscal year. Based on its high-profile long-term contracts, decreased dependency on the PC industry, and ability to increase margins, Mohan is optimistic about Western Digital. WDC stock, which closed on September 27 at $32.72, has a "buy" rating and a $60 price target from Bank of America.