These are the cheapest S&P 500 stocks with most upside as August approaches
Market prices may still be elevated, but there are plenty of opportunities for investors to find value in today’s market. Stocks seesawed on Friday , the last day in July, and the S & P 500 is only about 2% off its all-time closing high of 7,609.78, set June 2. The majority of Wall Street strategists expect the index to end the year even higher. That said, volatility has rocked the market as investors grow concerned about the artificial intelligence trade. Names like Microsoft and Amazon have jumped on earnings news, while Meta and Apple both sank. The iShares Semiconductor ETF is down 21% so far this month and the iShares MSCI USA Momentum Factor ETF has lost 12% month to date. Amid the turbulence, investors have been seeking opportunities beyond tech and in areas exposed to the real economy. Yet there are plenty of bargains still to be found in the broader market. To that end, CNBC Pro looked for S & P stocks that are considered cheap and have upside ahead, according to analysts. The stocks are trading at a 30% discount to the S & P 500, with a forward price-earnings ratio of 14.8 or lower. The S & P 500’s forward P/E is 21.26, as of Thursday afternoon. The names have an upside of 20% or more to the average price target and have buy ratings from at least 55% of the analysts covering them, per FactSet. Here are the companies that made the list. The cheapest name on the list is Devon Energy , which has a forward P/E of 9. The oil and gas producer has 36% upside to the average price target, per FactSet. Some 76% of the analysts covering the stock rate it a buy. In May, the Devon Energy completed its $58 billion merger with Coterra Energy . In June, the company gave an updated outlook for the year, which included an expected production of an average 1.380 million barrels of oil equivalent per day, including oil volumes of 500,000 barrels per day. DVN YTD mountain Devon Energy year to date CEO Clay Gaspar also said the company is reviewing its portfolio. “Optimizing our portfolio remains a top priority, and a complete review of our strategic and financial criteria is well underway,” he said in a press release. “We are confident in our ability to translate the power of this combination into durable free cash flow growth and improved shareholder returns.” According to a Bloomberg News report last week, Devon is considering a potential sale of its Eagle Ford and Powder River assets. Shares of Devon are up roughly 22% year to date. Carnival is another name that made the cut. The cruise operator has roughly 25% upside to the average price target, according to FactSet. Some 69% of the analysts covering the stock give it a buy rating. CCL YTD mountain Carnival year to date In June, Carnival reported mixed results. It topped expectations on its adjusted earnings per share, but revenue fell short. “Our booked position for the second half of 2026 is higher than last year, at historically high prices (in constant currency), despite navigating more than a full quarter of extreme geopolitical volatility that primarily impacted booking trends for our European deployments, particularly in the Mediterranean region, which were closest in proximity to the conflict in the Middle East,” CEO Josh Weinstein said in the earnings release. The stock has lost more than 9% this year. Some tech names also made the list, including Micron Technology , which has seen bouts of volatility all year. The memory stock, which has plunged from its June highs, was down nearly 4% on Friday. However, on Thursday it jumped 18%. In June, Micron reported a quadrupling of its revenue in the fiscal third quarter, which handily beat Wall Street’s expectations. Earnings also topped estimates. MU YTD mountain Micron year to date Micron has 79% upside to the average price target and 76% of the analysts covering the stock rate it a buy. Shares have gained 194% year to date. Lastly, Walt Disney has seen its shares tumble nearly 16% so far this year. The media and entertainment conglomerate is set to report its latest quarterly earnings on Wednesday. Sarat Sethi, a portfolio manager Douglas C. Lane & Associates, is among those who see value in the stock. He’s expecting double-digit earnings. “You’ve got a new CEO, so succession is no longer a big question. Their streaming is actually profitable,” he said in an interview earlier this month with CNBC’s ” The Exchange .” “The experiences are doing really well with the parks. And, you look at their cash flow, their stock buybacks — it’s a real show-me story.” DIS YTD mountain Walt Disney year to date Disney’s stock has 32% upside to the average price target and 73% of the analysts covering it rate it a buy, per FactSet.
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