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The fall in stocks this year has caused many on Wall Street to turn their attention to a previously undervalued part of the market: value. Value stocks are those stocks that typically trade at a low multiple compared to the broader market and have stable fundamentals. In recent years, investors have shunned high-value names in favor of their rising peers — those with high growth expectations relative to the broader market. The SPDR Portfolio S&P 500 Growth ETF (SPYG) has gained 87% over the past five years, while the value-based SPYV fund has grown by just 37% over that time. However, some on Wall Street have recently said they prefer to invest in value given current market conditions. In June, AQR Capital Management co-founder Cliff Asness said that value stocks are more attractive than growth stocks — even after a correction this year that sent the S&P 500 into a bear market. “We stick with it [value] because we always like some value in a portfolio. And we like it more when it looks really, really cheap,” Asness said on CNBC’s “Final Call”. More recently, Goldman Sachs said it was time for value to finally beat out growth, with analyst Cormac Conners noting, “Current relative valuations in the stock market imply that the cost factor will generate high returns over the medium term.” With that in mind, CNBC Pro reviewed the SPDR Portfolio S&P 500 Value ETF (SPYV) for stocks that met the following criteria: over 50% of analysts covering them. Potential upside comes from Dish Network, with analysts on average expecting the stock to rise nearly 78% from current levels, FactSet data shows. Roughly 53% of analysts covering the stock are a buy recommendation. Of course, the stock has struggled this year . a 40% drop. Another stock on our list is News Corp. Two-thirds of analysts covering the media company recommend it as a Buy, with an average price target suggesting upside potential of 55% from current levels. News Corp shares fell more than 20% in 2022 but rose 12% in the third quarter, outperforming the broader market in the meantime. Semiconductor giant Micron also made the list, with 66% of analysts rating it as a buy and an average upside of 31%. To be sure, Micron’s stock has fallen more than 8% in the past three months after the company said in late June that weakening consumer demand would hurt sales of smartphone memory chips. Analysts also favor FedEx in the pricing cohort, with 58% of them rating the shipping and logistics company as a buy. In addition, the average price target among analysts suggests upside potential of 39% from current levels. Shares have been under pressure in 2022, falling 19% in that time. However, KeyBanc’s Todd Fowler thinks the stock could be a winner going forward. “We believe that concerns about the recent downgrade of macroeconomic forecasts and the resulting performance are increasingly being ignored. We understand that trust in forecasts is important; however, we see upside potential with only a small improvement and additional support from more disciplined capital allocation,” said Fowler, who is overweight. The FedEx rating, according to a note on Thursday. Fowler’s target price of $325 per share is about 55% higher than the stock traded on Friday. Other names on the list include 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 ticker.
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