As growth stocks struggle, Wall Street analysts say bet on these value names

Published Fri, May 14 202111:45 AM EDTUpdated Fri, May 14 202112:57 PM EDT

Jesse Pound @/in/jesse-pound @jesserpound

The divergence between cheaper companies and growth/tech stocks reasserted itself this week, and there are still value plays with major upside, according to Wall Street analysts. It has been a volatile week in the U.S. stock market, including the worst day for the Dow Jones Industrial Average since January. But it has been worse for growth stocks, with the iShares S & P 500 Growth ETF falling nearly 4% through Thursday's close, more than twice as large a slide as its value counterpart. CNBC Pro searched the ranks of value stocks in the iShares S & P 500 Value ETF in search of the favorite names on Wall Street fitting this style. The stocks we found sport buy ratings from at least 70% of the analysts who cover the name and have projected average upside of at least 20% from Wall Street, according to data from FactSet. The value fund has already gained more than 16% year to date. Fossil fuel stocks are heavily represented on the list, including Diamondback Energy , Pioneer Natural Resources and Devon Energy . Diamondback, which is already up about 60% for the year, has more than 30% upside to its average price target from analysts, the highest on the list. Oil stocks, like many other names that currently fit in the value bucket, are also cyclical trades, which is part of the reason why Wall Street professionals are bullish on the companies. "Vaccination progress, fiscal spending, and released pent-up demand are primed to boost reflationary beneficiaries like financials, energy stocks, small-caps, emerging market stocks, and commodities," UBS said in a note Friday. "We view the 2022 earnings outlook for reflation and value sectors as comparatively more reliable than tech." Alaska Air Group is another company that should benefit from a post-vaccine economic rebound, and the stock has a buy rating from 80% of analysts on the Street. The airline announced earlier this week that it expected travel to return to pre-pandemic levels by the summer of 2022 and that it was adding 30 planes to its fleet to accommodate more demand. One large consumer name that made the list is Nike . The company has been battling calls for a boycott in China, but investment firm Jefferies upgraded the stock to buy earlier this week despite those concerns.

A Boeing 737-990 (ER) operated by Alaska Airlines takes off from JFK Airport on August 24, 2019 in Queens, New York.

Bruce Bennett | Getty Images

The divergence between cheaper companies and growth/tech stocks reasserted itself this week, and there are still value plays with major upside, according to Wall Street analysts.

It has been a volatile week in the U.S. stock market, including the worst day for the Dow Jones Industrial Average since January. But it has been worse for growth stocks, with the iShares S&P 500 Growth ETF falling nearly 4% through Thursday's close, more than twice as large a slide as its value counterpart.

CNBC Pro searched the ranks of value stocks in the iShares S&P 500 Value ETF in search of the favorite names on Wall Street fitting this style. The stocks we found sport buy ratings from at least 70% of the analysts who cover the name and have projected average upside of at least 20% from Wall Street, according to data from FactSet.