JPMorgan: Buy these 29 Cheap Stocks That are In ‘Extreme Dislocations’ in price and still Offering Strong Profit Growth

And More September 3, 2022 2 mins read

JPMorgan: Buy these 29 Cheap Stocks That are In ‘Extreme Dislocations’ in price and still Offering Strong Profit Growth

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The Federal Reserve's fight to curb inflation and return to the monetary policies it introduced at the pandemic's start has pushed investors to ditch growth stocks into value stocks and cash.

Year-to-date, the S&P 500 has plummeted nearly 18%, with growth stocks continuing to dramatically underperform as the market looks for its bottom. An index of the fastest-growing S&P 500 companies dipped 18% as of Friday, while its value counterpart was down 6%.

"This correction has pushed some growth stocks to extreme dislocations," said a team of strategists led by Dubravko Lakos-Bujas. As an example, they noted that the fastest-growing stocks are trading at a record 9x price-to-earnings discount relative to the rest of the S&P 500.

Below is a list of 29 stocks from the S&P 500 that JPMorgan says are cheap but have strong growth potential.

The stocks are ranked starting with the highest average growth-at-reasonable-price rating (GARP).

1. NRG Energy

Ticker: NRG

Sector: Utilities

Score: 3.0

2. Lincoln National Corporation

Ticker: LNC

Sector: Financials

Score: 3.0

3. Archer-Daniels

Ticker: ADM

Sector: Staples

Score: 2.9

4. Western Digital Corp

Sector: Technology

Score: 2.7

5. Alaska Air Group

Ticker: ALK

Sector: Industrials

Score: 2.6

6. Pfizer Inc

Ticker: PFE

Sector: Health Care

Score: 2.5

7. Micron Technology Inc.

Ticker: MU

Sector: Technology

Score: 2.4

8. Advanced Micro Devices, Inc.

Ticker: AMD

Sector: Technology

Score: 2.3

9. Hewlett Packard Enterprise Company

Ticker: HPE

Sector: Technology

Score: 2.3

10. Viatris Inc

Ticker: VTRS

Sector: Health Care

Score: 2.3

11. DXC Technology Co

Ticker: DXC

Sector: Technology

Score: 2.3

12. FedEx Corporation

Ticker: FDX

Sector: Industrials

Score: 2.3

13. Moderna Inc

Ticker: MRNA

Sector: Health Care

Score: 2.2

14. Delta Air Lines, Inc.

Ticker: DAL

Sector: Industrials

Score: 2.1

15. Weyerhaeuser Co

Ticker: WY

Sector: Real Estate

Score: 2.1

16. CBRE Group Inc.

Ticker: CBRE

Sector: Real Estate

Score: 2.1

17. Lennar Corporation

Ticker: LEN

Sector: Discretionary

Score: 2.1

18. Centene Corporation

Ticker: CNC

Sector: Health Care

Score: 2.1

19. Expeditors International of Washington Inc.

Ticker: EXPD

Sector: Industrials

Score: 2.0

20. MGM Resorts International

Ticker: MGM

Sector: Discretionary

Score: 2.0

21. Nucor Corporation

Ticker: NUE

Sector: Materials

Score: 2.0

22. PulteGroup, Inc.

Ticker: PHM

Sector: Discretionary

Score: 1.9

23. United Airlines Holdings Inc

Ticker: UAL

Sector: Industrials

Score: 1.9

24. LyondellBasell Industries N.V.

Ticker: LYB

Sector: Materials

Score: 1.9

25. Franklin Resources, Inc.

Ticker: BEN

Sector: Financials

Score: 1.9

26. Kroger Company

Ticker: KR

Sector: Staples

Score: 1.8

27. Regeneron Pharmaceuticals, Inc

Ticker: REGN

Sector: Health Care

Score: 1.8

28. Edison International

Ticker: EIX

Sector: Utilities

Score: 1.8

29. Live Nation Entertainment, Inc.

Ticker: LYV

Sector: Comm. Services

Score: 1.7

TAGS EquitiesJPMorganstock marketStocksUSA Herald

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.