A collection of stocks with strong earnings potential and discounted valuations may be a good way for investors to find value in the market. The artificial intelligence trade has been powering Wall Street's climb higher in 2024, with market leader Nvidia surging more than 140% so far this year. Peer chipmakers including Broadcom and Qualcomm have also ridden the wave.
Despite Monday's pullback in chip stocks, the AI boom has served as an anchor to the markets as investors wait for interest rate cuts and monitor the economy for signs of slowing. However, the rise of AI has also spurred concern over a lack of market breadth . To find stocks that haven't participated in the market's rally, CNBC Pro screened for S & P 500 stocks that are discounted compared with the broader market and abiding by the following criteria: Each stock maintains a price-to-earnings ratio that is at least a 25% discount compared with its to five-year P/E.
Earnings per share growth has averaged more than 5% the last three years. Shares are in the green for the first half of the year. Readers can add and customize this screen using the CNBC Pro Stock Screener tool here .
Data in the table below is as of Friday. Oil major Chevron made the list. Shares have ticked up more than 6% in 2024.
CVX YTD mountain Chevron stock. The company's first-quarter earnings fell from the prior year, hurt by declining natural gas prices — a headwind shared by rival Exxon Mobil . Chevron CEO Mike Wirth told CNBC in May that .
