These 14 cheap stocks are off to a great start in 2024. Wall Street sees two jumping more than 30%

Published Wed, Jan 17 20246:26 PM EST

Stock markets have rallied over the past two months and near all-time highs. Yet, shares in some companies are trading at steeper discounts than they have in recent history, presenting an opportunity for investors. While the S & P 500 has eked out a fractional gain so far this year, the benchmark index has actually rallied more than 30% since October 2023 on hopes of interest rates cut later this year. The recent gains have led to bulls and bears claiming the stock market is overheated , making stock-picking a significant challenge. Given this setup, CNBC Pro screened for stocks in the MSCI World Index that are already beating the index less than three weeks into 2024, yet trading cheaply based on their forward price-to-earnings ratios. Here are the criteria we used: Forward P/E at a discount of 10% or more to the average forward P/E over the past five years Total returns of more than 1.5% so far in 2024, well ahead of the benchmark Covered by 10 or more analysts, with 80% or more of them rating the stock a buy Consensus price targets offering upside of at least 15% Shares of Italian lenders Intesa Sanpaolo and UniCredit are among those trading at a steep discount of more than 20% on a forward price-to-earnings basis relative to their five-year averages and with significant upside potential, according to analyst price targets compiled by FactSet. Amazon shares also featured on the CNBC Pro's stock screen despite rising by about 75% in 2023. The e-commerce giant's shares still remain more than 15% below their high in 2021 despite the company's continued growth. Analysts expect the stock to rise 18% over the next 12 months. Unusual as it may seem after a 238% rally in 2023, Nvidia shares can also be considered cheap as per the stock screen since the artificial intelligence chip maker's share price gains have been swiftly backed up with a 14-fold increase in net profits in the quarter ending in October 2023, from the same period in 2022. Analysts expect the stock to rise 18% over the next 12 months. Other stocks on the list are project management software company Monday.com , Anglo-Swedish drug firm AstraZeneca , Japanese auto and auto parts makers Isuzu and Denso , and Canadian energy companies ARC Resources and Tourmaline Oil.