Wall Street's favorite value stocks include a media giant that could surge 55%

Published Sun, Sep 11 20229:00 AM EDTUpdated Mon, Sep 12 20228:58 AM EDT

This year's tumble in stocks has led many on Wall Street to look at a previously underappreciated part of the market: value. Value stocks are those names that typically trade at a low multiple relative to the broader market and have stable fundamentals. In recent years, investors had been shunning value names in favor of their growth counterparts — those with high growth expectations relative to the broader market. Over the past five years, the SPDR Portfolio S & P 500 Growth ETF (SPYG) is up 87%, while the value-oriented SPYV fund has risen just 37% in that time. However, some on Wall Street have recently voiced their preference toward value investing given current market conditions. In June, AQR Capital Management co-founder Cliff Asness said value stocks were more attractive than growth names — even after this year's correction that sent the S & P 500 into a bear market. "We're sticking with it [value] because we always like some value in the portfolio. And we do like more when it looks very, very cheap," Asness said on CNBC's "Closing Bell." More recently, Goldman Sachs said it's time for value to finally win out over growth, with analyst Cormac Conners noting : "Current relative valuations within the equity market imply the Value factor will generate strong returns over the medium term." With this in mind, CNBC Pro screened the SPDR Portfolio S & P 500 Value ETF (SPYV) for stocks that met the following criteria: Buy ratings from more than 50% of analysts covering them Upside to average price target of at least 20% Price-to-earnings ratio below the S & P 500's Here are the 10 names with the highest potential upside that made the cut. Topping the list in terms of potential upside is Dish Network , with analysts on average expecting the stock to rally nearly 78% from current levels, FactSet data show. Roughly 53% of analysts covering the stock rate it a buy. To be sure, the stock has struggled this year, dropping 40%. Another stock that made our list is News Corp . Two-thirds of analysts covering the media company rate it a buy, with the average price target implying upside of 55% from current levels. News Corp shares are down more than 20% in 2022, but have rallied 12% in the third quarter, outperforming the broader market in that time. Semiconductor giant Micron also made the cut, with 66% of analysts rating it a buy and seeing average upside of 31%. To be sure, Micron's stock is down more than 8% over the past three months, after the company said in late June that weakening consumer demand will hurt smartphone memory chip sales . Analysts also favor FedEx within the value cohort, with 58% of them rating the delivery and logistics company a buy. On top of that, the average price target among analysts implies upside of 39% from current levels. The stock has been under pressure in 2022, falling 19% in that time. However, KeyBanc's Todd Fowler thinks the stock can be a winner going forward. "We believe concerns around a recently lowered macro outlook and related execution are increasingly discounted. We understand guidance credibility is important; however, we see upside potential with only slight improvement and additional support from more disciplined capital deployment," Fowler, who has an overweight rating on FedEx, said in a note Thursday. Fowler's price target of $325 per share is roughly 55% above where the stock traded Friday. Other names that made the list are: Halliburton , DuPont , Tapestry , Phillips 66 , United Rentals and Bath & Body Works . Correction: This story has been updated to correct the SPDR Portfolio S & P 500 Growth ETF's ticker.