One Of These 15 Cheap Stocks Has A 250% Upside Potential

In the stock market, stocks are rising - on Thursday, the S&P 500 closed at its highest level since February.

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As a result of the banking crisis, tech stocks have performed better than the S&P 500 and the Dow Jones Industrial Average, particularly in light of the market volatility. The Nasdaq has been up around 16% so far this year, beating the Dow Jones Industrial Average and the S&P 500.

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Analysts continue to predict a recession this year, so investors must still contend with uncertainty. According to Fed documents, the U.S. Federal Reserve also expects a mild recession later this year as a result of the banking crisis.

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Although the situation is chaotic, there may be opportunities among the chaos, with several companies trading at steeper discounts when it comes to price-to-earnings on a relative basis than they have in the past.

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This ratio stands for the price-to-earnings ratio, which is calculated by dividing a company's share price by its earnings per share. In order to compute the Forward P/E, Wall Street analysts estimate the earnings per share of a company based on their forward-looking estimates for the next few years.

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Trade Algo screened for stocks in the S&P 500, Nasdaq Composite, and MSCI World for cheap stocks with big upside.

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The criteria they met were as follows:

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• The stock has a price-to-earnings ratio lower than its average five-year forward price-to-earnings multiple; at least 40% of analysts covering it rate the stock as a "buy."

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• An increase of 30% or more in the average price target.

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Analysts Love These Cheap Global Stocks

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• Enphase Energy

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• Exxon Mobil Corporation

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• First Solar

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• Marathon Petroleum Corporation

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• Schlumberger N.V.

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• Valero Energy Corporation

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• Bel Fuse

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• Broadwind

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• Harrow Health

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• Qantas Airways

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• Renault

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• Lufthansa

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• Commerzbank 

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• AIB Group

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• Futu Holdings

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The screen displayed a number of energy and tech stocks listed in the United States.

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A number of energy and renewable energy names were mentioned, including Exxon Mobil and Marathon Petroleum.

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There was a 175% upside potential with First Solar and a 250% upside potential with Broadwind Energy, respectively.

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The average five-year forward P/E multiple of Broadwind is -65%, while its average 10-year forward P/E multiple is +37%. A small company based in Cicero, IL., that makes energy equipment, has seen its shares rise over 100% since the U.S. Inflation Reduction Act was passed.

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There are three stocks on Trade Algo’s screen that are trading at steep discounts, one of which is Valero Energy, which is trading at a discount of 95%. This stock has a buy ranking of almost 70% and a potential upside of 52%.

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Harrow Health, Broadwind, and Bel Fuse are three stocks with 100% buy ratings. These stocks are manufacturers of electronic components as well as pharmaceutical companies.

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In terms of the global companies included under MSCI World, the majority were airlines, banks, and financial service companies, as well as automobile firms.

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Lufthansa had the highest upside in the global list with 74.9%, while Qantas Airways was trading at the steepest discount, -73.6% and 68.7%. Lufthansa had the steepest discounts with -73.6% and 68.7%, respectively.

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