Here are the cheapest stocks in the market right now

Published Wed, Oct 19 201612:55 PM EDTUpdated Wed, Oct 19 20161:21 PM EDT

Consumer discretionary and technology shares are the cheapest stocks in the market today using a simple valuation technique called the PEG ratio , according to analysis by Raymond James. The PEG ratio is calculated by taking the price-earnings ratio divided by a company's estimated long-term growth rate. "Our stance on valuation when it comes to the overall market is that, while equities are certainly not cheap, they aren't as overvalued as everyone seems to believe when you factor in low-yielding alternatives to stocks and improving corporate earnings in future quarters, but under the surface there are definitely pockets of the market that are more 'dear' than others," wrote Andrew Adams, market strategist at Raymond James, in a research note. Adams explains that consumer discretionary stocks have a higher expected growth rate than the price-per-earnings ratio, which gives them a PEG ratio below 1, or the lowest value among all sectors in the S & P 500 index . Similarly, technology stocks have a PEG ratio lower than 1.5, positioning the group as the second cheapest. On the flip side, high-yielding stocks in sectors such as real estate, telecom and utilities are the most expensive, fetching PEG ratios of at least 3, according to Adams' analysis. "Generally, the lower the PEG ratio, the more undervalued something is, and while the metric isn't perfect, it can help put the different sectors of the market into better context when trying to choose where to allocate capital," the strategist said. Source: Raymond James (Note: Energy has been excluded because it has negative earnings, which gives it a negative P/E and PEG ratio.) "We would rather have exposure to the more growth-oriented sectors instead of the 'safer,' higher-yielding parts that also happen to still be pretty expensive after their strong run earlier this year," Adams emphasized. With data from FactSet, CNBC PRO searched for the cheapest stocks in the S & P 500, based on those names with PEG ratios of 1 or below. Our list yielded 66 companies, of which 29 are part of the technology and consumer discretionary sectors. We highlight those names below, including General Motors , Time Warner , Broadcom and Facebook .

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Consumer discretionary and technology shares are the cheapest stocks in the market today using a simple valuation technique called the PEG ratio, according to analysis by Raymond James.

The PEG ratio is calculated by taking the price-earnings ratio divided by a company's estimated long-term growth rate.

"Our stance on valuation when it comes to the overall market is that, while equities are certainly not cheap, they aren't as overvalued as everyone seems to believe when you factor in low-yielding alternatives to stocks and improving corporate earnings in future quarters, but under the surface there are definitely pockets of the market that are more 'dear' than others," wrote Andrew Adams, market strategist at Raymond James, in a research note.