Despite some uncertainty about the economy weighing on the stock market and the profit outlook, there are good opportunities as investors gear up for earnings season. Companies will begin reporting their first-quarter financial results next week, beginning with Delta Air Lines, UnitedHealth and a number of large banks. First-quarter estimates for the S & P 500 are $50.71, down 5% from the same period last year, according to Refinitiv. Heading into what’s likely to be a tough earnings season, CNBC Pro used FactSet data to screen for names that are growing profits, bucking the recessionary trend. And their stock prices don’t reflect that yet. We searched for stocks that are cheaper than the S & P 500 on a P/E basis, loved by Wall Street and expected to grow earnings significantly this year. Each stock in the table below meets the following criteria: Forward price-to-earnings multiple less than 18 (below that of the S & P 500) Expected earnings growth of at least 25% this year, according to the consensus analyst estimate Buy ratings from at least 60% of analysts Here are the stocks: Delta , which will report next Thursday, has among the highest amount of buy ratings from analysts at 85.7% and potential upside of more than 50% based on the average price target of each analyst. It’s also the cheapest stock on the list with a forward price-earnings multiple of 6 and is expected to grow earnings 65% this year. Alaska Air joins it with expected earnings growth of 31.5% and buy ratings from 86% of analysts. It’s the next-cheapest stock in the table with a forward price-earnings multiple of 7. The energy sector has the biggest representation in the list, which includes Baker Hughes , Targa Resources , Halliburton and Schlumberger . Baker Hughes has a forward price-earnings multiple of 17.8. It has the second-largest estimated earnings growth at 72.5%. These stocks are also among the biggest winners when oil prices surge , as they have been recently, according to another CNBC Pro screen. Among the energy group, Halliburton has the biggest upside potential at about 49%. Ahead of it in earnings growth is Vici Properties , the real estate investment trust. It’s poised to grow earnings 93.5% in 2023, with a forward price-earnings multiple of 13.1. Some 83% of analysts have buy ratings on Vici, and JPMorgan just added it to its April focus list . In tech, Microchip Technology ‘s earnings growth is projected at 30% and potential upside to its stock price at 19%. The other tech name, dating app operator Match Group , ties with Baker Hughes with a forward price-earnings multiple of 17.9. It has the biggest upside potential at 68%.
