"S&P 500 continues to rise: Names to watch"

S&P 500 has gained 17% since the beginning of the year and has reached peak levels. These gains are even more remarkable considering the significant downturn the markets experienced this spring. Since that low point in April, the index has increased by approximately 37%.

However, amidst this positive atmosphere, there are some cautionary voices to heed. Savita Subramanian, a strategist from Bank of America, emphasizes that investors should remain cautious. Subramanian states, "Our bear market indicators point to triggers that typically follow the peak of the S&P 500. Currently, 60% of our indicators are active, which is below the average of 70% from previous peaks... Historical comparisons are problematic, as today's S&P is of higher quality, lightly leveraged, etc. However, risks are increasing, and we believe the valuation floor for the S&P 500 is likely lower than current levels... We believe selectivity is necessary," she said.

In this context, Bank of America equity analysts are taking a selective approach and identifying stocks that are likely to appreciate in the future. In this framework, companies like Doximity and Wayfair stand out.

Doximity (DOCS) is a noteworthy platform as a professional network in the medical field. The company claims to be the largest online network in the U.S. healthcare sector, with 80% of U.S. physicians and 50% of nurse practitioners and physician assistants being verified members on the platform. Doximity focuses on mobile telemedicine, enabling healthcare providers to communicate with each other and conduct video consultations with patients.

This year, Doximity acquired a Canada-based company named Pathway Medical for $36 million. This acquisition will allow Doximity to expand its AI (artificial intelligence) and clinical data sets.

Financially, Doximity reported first-quarter revenue for the 2023 fiscal year of $145.9 million. This figure represents a 15% increase compared to the previous year and exceeded forecasts. The company reported earnings of $0.36 per share during the quarter and achieved a 52% growth in free cash flow.

Bank of America analyst Allen Lutz notes that healthcare regulations create an advantage for Doximity and recommends a buy on the stock. Lutz has set a price target of $82 for Doximity, projecting that the stock could appreciate by about 24.5% over the next year.

Wayfair, Inc. (W), is another notable company that sells furniture and home goods internationally. Founded in 2002, Wayfair has a market cap of approximately $13.3 billion and generated $11.9 billion in revenue last year. With 21 million active customers and over 30 million home products, it stands out as a global operation.

According to the latest quarterly results, Wayfair has 21.2 million active customers, although this number has decreased by 2.3% compared to the previous year. Nevertheless, revenue per customer increased by 6.1%, reaching $578. The company generated $3.1 billion in revenue in the third quarter, reflecting a 7% increase compared to the same period last year.

Bank of America analyst Michael McGovern highlights Wayfair's strong position and performance, believing the stock is suitable for purchase. With a price target of $130, he indicates a potential increase of 27% for the stock. Wayfair shares are currently trading at around $102.40, and the average price target of $112.22 offers a growth potential of 10%.