Goldman Sachs: These stocks have up to 103% upside

Bath & Body Works (BBWI)

Bath & Body Works is a specialty retailer of home fragrance, body care, soaps and sanitizer products. At a time when brick-and-mortar retailers face intense competition from online giants like Amazon, Bath & Body Works keeps growing at an impressive rate.

In the most recent quarter, net sales rose 11% year over year to $3.03 billion. Adjusted earnings per share from continuing operations increased 17% year over year to $2.30.

“We believe there is upside potential to current consensus estimates given the expected rollout of the company’s loyalty program to the entire chain in mid-2022,” writes analyst Kate McShane.

Goldman has set a price target of $85 for Bath & Body Works — roughly 70% above where the stock sits today.

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Salesforce (CRM)

Salesforce is a cloud-based software giant. More than 150,000 companies use its customer relationship management platform to scale their business.

Cloud computing is a booming industry, and Salesforce’s numbers completely reflect that.

In the company’s most recent quarter, revenue surged 26% year over year to $7.3 billion. Management also issued upbeat guidance: It now expects full-year 2023 revenue of $32 billion, marking a year-over-year increase of 21%.

But the stock is down more than 20% in 2022, giving contrarian traders something to think about.

Last month, Goldman Sachs reiterated a ‘buy’ rating on Salesforce and raised its price target on the shares to $360, implying potential upside of more than 80%.

Penn National Gaming (PENN)

Penn National Gaming is a casino and racetrack operator with 44 properties in 20 states. It also provides online sports betting in 13 jurisdictions.

The shares rallied nicely in pandemic-struck 2020, but have slumped ever since on concerns over slowing growth. They’re down more than 60% over the past year. That could give bargain hunters an opportunity, especially considering how much the company’s business has improved.

In Q4, revenue grew 53% year over year to $1.57 billion, while net income spiked 253% to $44.8 million. The company generated record free cash flow in 2021 and is returning cash to investors. In February, the board approved a $750 million share repurchase program.

Goldman has a ‘buy’ rating on Penn and a price target of $77. With the stock trading at around $38 right now, that target suggests potential upside of 103%. Bargain hunters interested in another low-risk investment can also invest in "fractional real estate" for as little as $1.