The first half of April has delivered a whirlwind of market-moving headlines. It all kicked off with President Trump’s tariff bombshell, which sent the markets crashing. In response, Trump has dialed back some of his bellicosity, and while volatility remains a fairly constant feature, markets have regained a chunk of the recent losses.
Amid all the turbulence, Bank of America sees a silver lining for savvy investors. According to the firm’s analysts, the recent selloff has dragged down fundamentally sound stocks – creating a window to scoop up quality names at discounted prices.
Let’s take a closer look at two of those stocks. These names may be down for now, but Bank of America believes they’re set for a comeback. Moreover, the TipRanks data shows both carry Buy ratings from Wall Street – and analysts see double-digit upside potential ahead. Let’s dive in.
Brookfield Asset Management (BAM)
We’ll start in the world of alternative asset management, with Brookfield Asset Management. This company spun off from the larger Brookfield Corporation in December of 2022, and in December of last year it moved its offices from Toronto to New York City. The company exceeded $1 trillion in total assets under management last summer, putting it into the global top tier of asset managers.
Brookfield is actively working to expand its investment portfolio and its capital assets. In 2024, the company raised $135 billion in new capital, which helped to drive an 18% year-over-year increase in the company’s fee-bearing capital assets. More recently, Brookfield this month made two important acquisitions. The first was the purchase, for $9 billion, of Colonial Enterprises – with its important Colonial Pipeline network that comprises 5,500 miles of refined products pipelines between New York and Texas. The second acquisition this month was a majority stake, 50.1%, in the mortgage lender Angel Oak. This acquisition will bring Angel Oak, which will continue to operate independently, into Brookfield’s credit business, which has over $317 billion in managed assets.
Turning to the company’s financial results, we find that Brookfield had distributable earnings of $649 million for 4Q24. This came to 40 cents per share and beat the forecast by a penny. In the earnings release, the company declared a common share dividend of 43.75 cents per share, which was paid out on March 31. The dividend annualizes to $1.75 per common share and gives a forward yield of 3.3%. The company’s fee-related earnings (FRE) in the quarter came to $677 million, up 16.5% year-over-year.
We should note that the company’s stock has been impacted by the recent market volatility. While BAM is up 31% for the past 12 months, the shares are down 11% so far in 2025.
However, Bank of America analyst Craig Siegenthaler sees an opportunity here, noting the company’s strong array of assets, its ability to expand those assets, and its ability to generate earnings from them. He writes of Brookfield Asset Management, “We remain positive on the multiple secular drivers supporting the Alts including GP consolidations, infrastructure, insurance, and private wealth. Brookfield Asset Management (BAM) has the #1 infrastructure business in the world and is building an insurance business that replicates the success of APO. In our view, the BAM stock is well positioned for these themes while offering a defensive FRE rich profit stream that is currently being undervalued by the market and offers several near-term catalysts: 1Q25 & 2Q25 EPS beats and multiple index additions.”
Quantifying his stance, Siegenthaler rates the stock as a Buy, with a $65 price objective that points toward a 35.5% upside potential in the next 12 months. (To watch Siegenthaler’s track record, click here)
This asset manager gets a Moderate Buy consensus rating from the Street’s analysts, based on 13 recent reviews that include 7 Buys, 4 Holds, and 2 Sells. The shares are priced at $47.99 and their $58.06 average price target implies a potential one-year gain of 21%. (See BAM stock forecast)
Element Solutions (ESI)
Next on our list is Element Solutions, a specialty chemical company whose products are vital in a wide range of industries, including electronics, energy, graphics, and manufacturing. The company was founded in 2013 and operates through a network of brands and subsidiaries. Element Solutions is based in Fort Lauderdale, Florida.
Prominent among the company’s products on the electronics side are liquid chemical baths used in the preparation of printed circuit boards; solders, fluxes, alloys, and nanomaterials used to join high-end circuits together; and photomasks used in creating circuit patterns in the assembly of silicon transistors. On the industrial side, the company is known for its chemical coatings, used in the automotive and aerospace fields; its image transfer materials used in the printing and graphics fields; and its fluid chemical formulations designed for water-based hydraulic controls that are found in deep-water drilling rigs.
Element Solutions’ products are used worldwide, and the company operates with a global footprint. The company boasts a total of 63 manufacturing and R&D facilities, working in 18 countries, and can provide localized sales and distribution services. These factors are likely to provide some insulation for the firm during the period of uncertainty before President Trump’s tariff policies reach a steady state.
The company’s products are also considered essential in their niches, which is always good for business. In its last quarterly report, for 4Q24, Element Solutions reported earnings of 35 cents per share by non-GAAP measures, up 3 cents per share year-over-year and in line with expectations. At the top line, the company’s revenue for the quarter came to $624.2 million, beating the forecast by almost $26 million and growing 8.9% year-over-year. The strongest growth came from the Electronics segment, which was up 14% to reach $401 million in net sales; the Industrial & Specialty sales, at $223 million, were up 1% from 4Q23.
We should note here that ESI shares peaked last November – and are down 36.5% since then, with the largest part of that decline taking place over the past month.
However, Steve Byrne, in his coverage of Element Solutions for Bank of America, sees an opening here for investors. He notes that the company has options to cope with a higher tariff regime, and that it has the cushion of providing essential products. Byrne writes, “Consumer electronics will primarily be subject to the 20% fentanyl tariff applied to China, which is likely to be passed to end consumers, and minimal tariffs from other countries, creating more stability in the consumer electronics market. In the event of widespread inflation across all products, ESI should be able to pass through costs due to its specialized, nondiscretionary, and relatively low-cost products. ESI’s shares have fallen 34% in the last 2 months, which we view as an attractive buying opportunity, given limited tariff impact to raw material costs and demand…”
Looking ahead, Byrne outlines future growth for the stock, saying of it, “While we do expect slight EBITDA decline in 2025 from market demand destruction and tariff impact, ESI’s niche market positioning and pricing power, should allow them to still grow at a premium to the broader consumer electronics market. The stock currently trades at a level with meaningful upside relative to the specialty comps universe.”
For Byrne, all of this adds up to a Buy rating on ESI – and a $24 price target that implies a 29% upside potential for the coming year. (To watch Byrne’s track record, click here)
This unique industrial stock gets a Strong Buy consensus rating from the Street, based on 8 recent reviews that break down to 7 Buys against 1 Hold. The shares are currently trading for $18.60 and their average price target of $27.88 suggests that the stock will appreciate by 50% in the months ahead. (See ESI stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.