These are the cheapest stocks in the S&P 500 that could be buying opportunities

Published Fri, May 20 202211:46 AM EDTUpdated Fri, May 20 20221:12 PM EDT

The last two months have been chaotic for Wall Street as big technology giants like Alphabet and Netflix stretch further into bear market territory and the S & P 500 enters a bear market of its own. While the short-term selling could be far from over, the current market conditions may mark an opportune time for long-term investors looking for cheap bargains. "We think there are a lot of very cheap stocks out there right now but unfortunately investors tend not to get as excited about adding to their portfolios when the market is down so we aren't being flooded with new money to take advantage of these opportunities," Bill Nygren of Oakmark Funds told CNBC's "Squawk on the Street" this week . Nygren pointed to financials and energy stocks he thinks are trading at a discount and encouraged investors to revisit their asset allocations. Some of the names included Ally Financial and General Motors . Searching for cheap stocks To find some of the best possible bargains in the S & P 500, we used FactSet data to search for stocks trading at the heaviest discounts to their historical price-earnings ratios. These stocks sport estimated P/Es that are much lower than their average valuation of the last five years. We then looked at these cheap stocks and then found the companies among them that are expected to grow earnings per share by at least 20% this year. So not only are these stocks cheap, they are expected to increase earnings far more than their peers. And then from that list we selected the names that are also liked by Wall Street, with a majority of analysts giving buy ratings. Here's who made the cut: Walt Disney is no stranger to the ongoing sell-off that has hard hit many technology and media stocks. The stock is trading at a nearly 29% valuation discount. Shares of the entertainment company have cratered about 34% since the start of the year and are trading about 45% off an all-time high. Earlier this month, the company reported strong than expected subscriber growth but said it faces a slow parks recovery in Asia as Covid-19 lockdowns resurface. Amid the market sell-off, many big hedge fund managers and investors including Dan Loeb and Dan Sundheim's D1 Capital also dumped stakes in the company in the first quarter. Despite the drawback, earnings per share are still expected to grow about 79% this year, according to consensus analyst data collected by FactSet. On the technology front, semiconductors companies like Nvidia and AMD , which have experienced their fair share of the sell-off amid ongoing supply shortages, also made the cut. Nvidia and AMD shares have plummeted more than 44% and 35%, respectively, this year. Other semiconductors including Qualcomm , Micron Technology and Western Digital also made the cut. Both Nvidia and AMD are trading at deep discounts to their historic P-E ratios. Fast food giants Darden Restaurants and Chipotle Mexican Grill , which have cratered 29% and 35%, respectively, from their highs, also made the list. Chipotle recently reported a beat on first-quarter earnings as customers continue to pay for higher costs for its products, which have risen about 10% over the year-ago period. Shares of the restaurant chain are down about 27% since the start of the year but could rally about 26% based on consensus price targets. Both Darden and Chipotle are trading at 26.6% and 28.4% price-to-earnings discounts. Other big names that made the list included Visa , Dollar Tree and General Electric .