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On the tail-end of a down year, there are some stocks that might be cheaper than they should be. The S & P 500 ended 2022 down 19.4% as investors grew increasingly skittish with the Federal Reserve raising interest rates and the rising concern of an incoming recession. That has led to a down year for the majority of stocks — and all but one of the 11 sectors — in the broad index. But this sharp decline could present a buying opportunity, as some stocks are set to rally. With this in mind, CNBC Pro used FactSet to screen for stocks viewed as “cheap” right now by finding those that met the following metrics: A forward price-to-earnings ratio, which looks at estimated earnings for the next 12 months, of less than 10 Earnings per share growth expectations of 10% or more Upside to the stock’s consensus price target of 10% or more These 11 names made the list: Signature Bank is expected to rally the most by the average analyst, with an implied upside of 49%. Along with PulteGroup , it also has the lowest forward price-to-earnings ratio among the names on the list, at 6.2 times. Speaking at a financial services conference in December, Eric Howell, chief operating officer at Signature Bank, said that the bank is planning to exit $8 billion to $10 billion in deposits tied to cryptocurrencies, according to a transcript from FactSet. The news arrived as concerns grew over digital currency following the collapse of FTX . Janney Montgomery Scott maintained its buy rating on the bank’s shares, but reduced per-share earnings estimates for the fourth quarter of 2022, as well as for 2023 and 2024. “Decision to meaningfully reduce digital asset deposit exposure & slow asset growth constrains forward EPS,” wrote analyst Jake Civiello in a December note. Signature Bank’s stock was down 17.4% in December and off by about 64.4% in 2022. Media company Fox also made the list as the average analyst anticipates it could gain nearly 23% in the next 12 months. The stock ended 2022 down 17.7%. News Corp. announced in October that a special committee was formed to review a potential reunion with Fox, which are both owned by Rupert Murdoch. News Corp. owns Dow Jones, a business unit that contains brands such as Barron’s and The Wall Street Journal. The committee said in early December that no decision has been made. Further down the list, United Rentals has a price-to-earnings ratio of 9.6. The company completed its $2 billion acquisition of Ahern Rentals earlier this month. The average analyst expects the stock to rally 17% in the next year. It gained 6.9% in 2022. Other names that made the cut include Ford , Charter Communications , Global Payments and EOG Resources . — CNBC’s Chris Hayes contributed to this report.
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