A broad sell-off in the market has presented an opportunity for bargain hunters. CNBC Pro identifies buy-rated stocks from the U.S. and beyond that look to be trading at a sharp discount and could be primed for big returns going forward. The MSCI World Index is down over 11% year-to-date amid a turbulent backdrop and a spike in market volatility. Meanwhile, investors are bracing themselves for a possible recession, after a host of Wall Street banks issued warnings about persistently high inflation, slowing growth, high unemployment and the prospect of a steep rate hike cycle. CNBC PRO screened for MSCI World constituents that are at least 20% off their 52-week high and at least 10% below their average forward price-to-earnings ratio over the past five years. These names are also buy-rated by the majority of analysts, who expect them to rally at least 20% over the next 12 months, according to FactSet data. Unsurprisingly, a host of technology stocks made the screen, with the sector bearing the brunt of the market selloff. Two FAANG stocks — Amazon and Alphabet — are now trading about 20% below their 52-week high and at discounts to their average forward multiples. Analysts think they have average upside of 29% and 31.1%, respectively, according to FactSet. Other tech stocks that turned up on the screen include ZoomInfo , software giants Adobe , Salesforce , Workday and HubSpot . Chip stocks have also been caught up in the selloff amid runaway inflation and persistent supply chain shortages, but some analysts believe the market is ripe with opportunities for those choose carefully . Favorites tend to include chip makers with a foothold in structural growth areas such as 5G, artificial intelligence and high-performance computing. Read more Bernstein says UK stocks are looking cheap, and picks 6 names it says are set to rally Morgan Stanley says stay disciplined amid volatility, and names 'cheap' global stocks to buy Chip stocks which made CNBC Pro's screen include Nvidia , Infineon , Micron and Applied Materials . The list also includes several finance stocks such as Charles Schwab , Ally Financial , Synchrony Financial and private equity firm Carlyle Group . When it comes to global stocks, insurer AIA Group , Japan's SoftBank, France's BNP Paribas and the Netherlands' ING made the screen. Banking stocks have come under pressure amid fears that a steep rate hike cycle by the U.S. Federal Reserve will erode economic growth, curtail loan demand and force banks to increase their allowances for bad loans, as concerns grow that a recession in the U.S is around the corner. A raft of automotive stocks also turned up on the screen too. Shares of General Motors and Volkswagen are down nearly 40% from their 52-week high, but the majority of analysts covering the stocks see significant upside. Auto stocks have been out of favor in recent times due to supply-side woes, low uptake in consumer demand and margin pressure led by high raw material cost. Other stocks from this sector that made the list include Mercedes-Benz , Volvo , Suzuki Motor and Stellantis . Here are some of the stocks that turned up on the screen:
The once high flying tech sector has endured a heavy selloff this year amid concerns that the sector's growth could be curtailed by rising interest rates. The tech-heavy Nasdaq Composite is down more than 14%.
Chris Hondros | Newsmakers | Getty Images
A broad sell-off in the market has presented an opportunity for bargain hunters. CNBC Pro identifies buy-rated stocks from the U.S. and beyond that look to be trading at a sharp discount and could be primed for big returns going forward.