These big Nasdaq stocks are trading at bargain-basement valuations

Published Thu, Feb 29 202411:16 AM ESTUpdated Thu, Feb 29 202411:46 AM EST

Equities may be trading near their record highs, but there are still opportunities to buy some stocks at bargain-basement prices. The major stock indexes have started off 2024 by continuing a spectacular bull rally that got underway at the end of October, despite weakening a touch this week. Year to date, the S & P 500 and Nasdaq Composite have both risen more than 6.5%, with the Dow Jones Industrial Average pushing higher by another 3.2%. But even within this mania of high-flying stocks, there are still plenty of companies trading below fair value. CNBC Pro searched through the Nasdaq-100 index to find stocks that currently look cheap. To meet this criteria, the stocks had to have a trailing 12 month price-to-earnings ratio less than their five-year average. Additionally, the names also had to have a forward price-to-earnings ratio for the next 12 months that was below the Nasdaq-100's current 17.6. Here are the names that made the cut: PayPal , which has a forward price-to-earnings ratio of 12, was one name that made the list. More than half the analysts covering the payments provider rate it a hold, although the average analyst price target implies upside of around 16%. "Competition within the online checkout space has placed more pressure on PayPal's growth rates, with a slump of four consecutive quarters in active customer accounts," Argus Research wrote. Shares of PayPal tumbled earlier this month after the payments giant issued disappointing forward guidance while reporting fourth-quarter earnings . This was followed by a downgrade to a hold at Argus, for example. Also on the list of stocks was pharmaceutical maker AstraZeneca , which has a forward price-to-earnings ratio of 13.7. Most analysts covering the stock have a buy rating, with share price targets corresponding to implied average upside of 24%. AstraZeneca has fallen nearly 5% this year. Deutsche Bank downgraded the British stock in early February to a sell from hold, citing "underwhelming" and "soft" fourth-quarter earnings. Another stock with depressed valuations is Cisco . The internet networking equipment maker sells at 13.8 times earnings, and most analysts covering the stock give it a hold rating. Average price targets imply potential upside of 11%. Cisco also slid earlier this month after reporting declining fiscal second-quarter revenue and issuing lighter guidance than expected for the fiscal third quarter. It also announced it would lay off around 5% of its workforce , equating to around 4,250 employees. Shares of Cisco are down 4.2% so far this year. Other names on the list of potential bargain stocks include Diamondback Energy , Keurig Dr Pepper and Kraft Heinz . — CNBC's Fred Imbert contributed to this report.