Several stocks, including an e-commerce play and a major snack maker, appear cheap after the broader market's recent volatility. Investors could take advantage of the opportunity for long-term gains. All three major U.
S. indexes have seen a rebound and are trading above their Aug. 2 closing level, which was the session before the global market-sell off picked up steam.
But many stocks are still way down from their highs and are now sporting more attractive valuations. CNBC searched for S & P 500 stocks that are "cheap" relative to the broader market and that meet the following criteria. Data used was from FactSet.
Forward valuation less than S & P 500's overall forward price-to-earnings ratio of 22.56 Cheap relative to their sector and the broader market Upside to analysts' average price target of 10% or more Has gained 5% or more over the past month Consensus analyst buy or overweight rating Take a look at the list of stocks below: PayPal has the highest potential upside of the group at 23.10%, according to analysts' average price target of $78.
12. The company has a price-to-earnings ratio of 14.1 over the next 12 months, less than that of the broad-market index.
The stock has added more than 7.5% since the start of the year — and 14% this quarter alone, after the company surpassed second-quarter expectations, reviving analysts' enthusiasm for the stock after nearly three years of heavy underperformance. Bernstein analyst Harshita Rawat upgraded shares to outperform on Jul.