These cheap stocks have P/Es less than 10 and big potential upside

Stocks have rallied this year, but there are still opportunities to snag some names that could do well going forward at a discount. The S & P 500 is up 19% in 2023. Last week, the benchmark hit its highest intraday level since July. To be sure, the broad market benchmark is on track to post its first weekly loss in six weeks. The market rally has been led by megacap tech names such as Nvidia and Meta Platforms as investors buy into the artificial intelligence craze. However, the run-up in these stocks — Nvidia and Meta are up 216% and 171%, respectively — has pushed their valuations well above the broader market’s. Still, there are some stocks trading at low valuations relative to the market that are expected to do well going forward. CNBC screened for stocks that met the following criteria: A forward price-to-earnings ratio of less than 10. Estimated growth year-over-year for 2023 of more than 10% Average analyst price target implies at least 10% upside Price to earnings is a valuation metric widely used on Wall Street. When a stock trades at a lower multiple than the market, it signals shares may be cheap. Airline operators United Airlines and Delta made the list, with forward P/E ratios of 4.4 and 6, respectively. Shares of United have added more than 10% from the start of the year, while Delta stock has climbed nearly 23%. UAL YTD mountain United Airlines stock. Analysts are also optimistic on both airline giants, with those polled by FactSet forecasting nearly 40% upside moving forward for United and a 33% gain for Delta. United recently announced plans to expand its presence at George Bush Intercontinental Airport in Houston in a $2.6 billion project. Delta, meanwhile, reaffirmed on Wednesday its fourth-quarter guidance. The company expects year-over-year revenue growth in the range of 9% to 12%. DAL YTD mountain Delta stock. Other names on the list include pharmaceutical firm Royalty Pharma and cloud communication company RingCentral . The former has a price-to-earnings ratio of 7.3, while the latter trades at a multiple of 9.2. Shares of Royalty Pharma have have slumped more than 26% this year, while RingCentral stock has ticked down about 6%.