There are still some cheap stocks in this market despite the strong first-half performance. The S & P 500 surged more than 15% to start the year, marking its biggest first-half gain since 2019 — when it jumped more than 17%. The bulk of that rally came from tech, with investors betting big on artificial intelligence. One negative to come out of that surge is an elevated market valuation. As of Wednesday, the S & P 500 is trading at a forward price-to-earnings ratio of 19.
Pro screened the S & P 500 for stocks with the lowest forward PE ratio relative to their sector average. Here are the 11 names that made the cut : AT & T made the list, with a relative forward valuation of just 0.38 — the lowest in the communication services sector. The stock has struggled this year, losing more than 12%. Over the past 12 months, shares are down more than 23%. That said, the stock is well-liked by analysts.
's Michael Bloom contributed reporting.