The Russell 1000 index is getting its annual refresh after the market closes on June 23, taking effect the following Monday. The Russell rebalancing typically triggers extreme volatility in stocks that are entering and leaving the Russell 1000, Russell 2000, Russell 3000 and other Russell indexes as part of their annual reconstitution process.
Russell rebalancing day has historically been one of the highest trading volume days of the year, but it can be difficult for even professional traders to predict which direction the affected stocks will move.
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One of the most popular ways to invest in the Russell 1000 is to buy an exchange-traded fund, or ETF, that captures the returns of the index. Two great options are the iShares Russell 1000 Growth ETF (ticker: IWF) and the Vanguard Russell 1000 Growth ETF (VONG).
If you’re interested in individual stocks in the index, however, here are 10 of the best Russell 1000 stocks to buy with the most potential upside, according to Bank of America analysts:
| Stock | Implied upside over June 21 closing price |
| Rivian Automotive Inc. (RIVN) | 173.6% |
| Southwestern Energy Co. (SWN) | 155% |
| TripAdvisor Inc. (TRIP) | 135.9% |
| BioMarin Pharmaceutical Inc. (BMRN) | 107.6% |
| Concentrix Corp. (CNXC) | 101.2% |
| Elanco Animal Health Inc. (ELAN) | 90.2% |
| Paramount Global (PARA) | 103.3% |
| RingCentral Inc. (RNG) | 97.8% |
| Viasat Inc. (VSAT) | 101.7% |
| General Motors Co. (GM) | 89.1% |
Rivian Automotive Inc. (RIVN)
Rivian Automotive designs and produces electric vehicles, and the company began its first deliveries in late 2021. Rivian went public in November 2021 at an initial public offering price of $78, but the stock has been a disaster for investors. With Rivian shares now trading at about $15, analyst John Murphy says it remains one of the most viable U.S. EV startups and could be a serious threat to legacy automakers. Murphy says Rivian has a strong brand, competitive technology and attractive vehicle models. Bank of America has a “buy” rating and $40 price target for RIVN stock, which closed at $14.62 on June 21.
Southwestern Energy Co. (SWN)
Southwestern Energy is one of the largest natural gas producers in the U.S. Analyst Doug Leggate says Southwest is significantly leveraged to a long-term reset in U.S. natural gas prices. In the near term, Leggate says Southwest’s upside may be capped by its hedges, but he says the stock is a great way to bet on natural gas prices remaining higher for longer. Leggate says Southwest is taking advantage of its higher cash flow to reduce its debt load and improve its balance sheet. Bank of America has a “buy” rating and $14 price target for SWN stock, which closed at $5.49 on June 21.
TripAdvisor Inc. (TRIP)
TripAdvisor is a leading online travel and media platform that has more than 450 million average monthly visitors. Analyst Nat Schindler says TripAdvisor’s investments in its tours, activities and attractions platform Viator are paying off. He says Viator is a large growth contributor and has positioned TripAdvisor to expand margins over time. Schindler expects Viator’s growth to slow in coming quarters, but the company will continue to make progress in the large and under-penetrated online experience booking market. Meanwhile, the core TripAdvisor platform remains a cash cow. Bank of America has a “buy” rating and $38 price target for TRIP stock, which closed at $16.11 on June 21.
BioMarin Pharmaceutical Inc. (BMRN)
BioMarin Pharmaceutical develops drugs to treat serious rare diseases and medical conditions. Analyst Geoff Meacham says BioMarin’s recent share price weakness is tied to uncertainty surrounding the upcoming June 30 Food and Drug Administration decision date for hemophilia A gene therapy Roctavian. Meacham says Roctavian’s European launch has been slower than anticipated, but he says an FDA approval could help re-engage investors as the drug’s global rollout continues. In addition, Meacham says expansion of achondroplasia drug Voxzogo’s label could also create meaningful shareholder value. Bank of America has a “buy” rating and $200 price target for BMRN stock, which closed at $96.34 on June 21.
Concentrix Corp. (CNXC)
Concentrix provides customer experience solutions and technology, including customer experience process optimization and front- and back-office automation. Analyst Ruplu Bhattacharya says generative artificial intelligence is creating new opportunities for the company, including in consulting, journey mapping and information technology services. Bhattacharya says higher-level AI work will provide new sources of higher margin revenue. He says Concentrix’s extensive portfolio of products, its global scale, its emerging market growth potential and its strong customer relationships create value for investors. He projects 6.9% revenue growth in 2023. Bank of America has a “buy” rating and $165 price target for CNXC stock, which closed at $81.99 on June 21.
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Elanco Animal Health Inc. (ELAN)
Elanco Animal Health is one of the largest global producers of production and companion animal medicines and vaccines. Analyst Michael Ryskin says Elanco has an attractive valuation, and he anticipates several major product approvals and launches that could be bullish catalysts for the stock. Ryskin says animal health trends are positive, particularly in emerging markets. In addition, he says Elanco has opportunities to expand margins as it optimizes production. Ryskin projects the company will return to positive revenue growth in 2024. Bank of America has a “buy” rating and $19 price target for ELAN stock, which closed at $9.99 on June 21.
Paramount Global (PARA)
Paramount Global is a global entertainment company formed from the merger of Viacom and CBS in 2019. The company owns Paramount Pictures TV and movie studios, TV networks such as CBS and Comedy Central, and streaming platforms Paramount+ and Pluto TV. Paramount shares are down about 48% since the beginning of 2022, but analyst Jessica Reif Ehrlich says the company owns unique, valuable assets that create opportunity for a strategic pivot or even a potential asset sale. Buyers have already reportedly expressed interest in BET and Showtime. Bank of America has a “buy” rating and $32 price target for PARA stock, which closed at $15.74 on June 21.
RingCentral Inc. (RNG)
RingCentral provides cloud solutions for business communication. Analyst Michael Funk says RingCentral’s profitability initiatives continue to pay off in the form of margin expansion and free cash flow generation. In the first quarter, RingCentral raised its revenue and profitability guidance and gave positive commentary on its margin outlook. Funk says the company’s win rates and average revenue per user are holding steady. Its demand trends are also solid. He says RingCentral has a differentiated product offering, is outgrowing peers and has tremendous free cash flow growth potential. Bank of America has a “buy” rating and $65 price target for RNG stock, which closed at $32.86 on June 21.
Viasat Inc. (VSAT)
Viasat provides satellite and digital communication products to governments, businesses and consumers. Analyst Benjamin Heelan says Viasat has strong underlying momentum following the successful launch of Viasat 3 in late April. Heelan says Viasat 3 should help accelerate the company’s revenue and cash flow growth. In addition, he says the completion of the Inmarsat acquisition should be a key catalyst for Viasat. Heelan projects Viasat’s revenue growth will accelerate as sales jump from $2.8 billion in 2023 to about $5 billion by 2025. Bank of America has a “buy” rating and $81 price target for VSAT stock, which closed at $40.16 on June 21.
General Motors Co. (GM)
General Motors is one of the largest legacy automakers. Analyst John Murphy says GM reported higher volumes and prices than Wall Street was anticipating in the first quarter, and he sees potential upside to the company’s 2023 guidance. Murphy says GM’s core internal combustion engine business will help it generate $9.4 billion in net income in 2023, helping fund its next-generation autonomous and electric vehicle technology development. Murphy says GM’s innovative mobility services may also unlock value for investors. Bank of America has a “buy” rating and $70 price target for GM stock, which closed at $37.01 on June 21.
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10 Best Russell 1000 Stocks to Buy originally appeared on usnews.com
