With fears of a recession growing in 2023, Bank of America has small-cap options that it hopes will withstand the downturn — and even some that are pulling back. All three major averages were higher to start the new year on the back of data that suggested inflation may be cooling. Investors hope the numbers could encourage the Federal Reserve to pull back on its rate hike campaign. The tech-heavy Nasdaq Composite is up 5.8% this year, while the Dow Jones Industrial Average and S&P 500 are up 3.5% and 4.2%, respectively. Because of this, Bank of America selected 35 of the best small and mid-sized ideas for 2023, including one e-commerce stock called Xometry that is expected to double from here. These names could rise by an average of 24%, based on their 12-month price targets, according to the note. They have a market cap of $1 to $15 billion, or belong to one of the small or mid-cap U.S. indexes. In addition, they have liquidity of at least $20 million per day, on a 3-month, 6-month or 12-month basis. “[We] believe that focusing on high quality small caps with resilient earnings is most important this year. Many of the stocks on our list are well-positioned to overcome the economic crisis, in our view,” wrote Jill Carey Hall, an equity and quantitative strategist at Bank of America. Here are 10 names. Xometry, an online market for industrial shares, will be approximately twice to a price target of $60, according to Bank of America. Analyst Nat Schindler said that the stock will outperform the market and its competitors in 2023 due to increasing adoption and spending on the platform. What’s more, Xometry will have “minimal (or useful) impact from difficult macros (with accelerating revenue growth in ’22 and where, in the event of a recession, we believe the platform is well capitalized / has sufficient operational flexibility to manage expenses), and increase the margin, “Schindler wrote. Meanwhile, automatic. Share service Driven Brands is expected to remain resilient in the recession, as parent company Meineke Car Care Center and other businesses provide on-demand repairs and maintenance for vehicles. ih of 30% to $38 price objective from the closing price on Friday, BofA said. Next, food service provider Aramark is a “turnaround story” that only experienced a drop in sales during the Financial Crisis, according to the note. Additionally, analyst Heather Balsky noted the company’s focus on profitable growth and investment in sales force has paid off. Another stock added to the list is French fry maker Lamb Weston, which could continue to see positive gross profit and revised earnings per share. Meanwhile, Planet Fitness will benefit in the recession, as consumers trade down from higher-end gyms, the bank said. Other stocks included in this list are Deckers Outdoor, Toll Brothers and Blue Owl Capital. – CNBC’s Michael Bloom contributed reporting.