Technology stocks are increasingly dominating the stock market. But for investors looking to diversify their portfolios, there are a host of names outside of the glitzy tech world that offer attractive investments. Stocks have continued to rise since last month, starting June on a strong note. The S&P 500 is up 1.3% so far this month, the 30-stock Dow Jones Industrial Average is up 0.3% and the Nasdaq is up about 2.4%. However, only four companies on the “Big Seven” list – Nvidia, Microsoft, Apple and Alphabet – grew in market capitalization more than the rest of the broader index in May, leading some investors to seek alternative but still safe pockets of companies. . Strategas Securities analyst Ryan Grabinski wrote in a report: “While the market’s concentration risk is as high as ever, with approximately 28% of the index concentrated in just 5 stocks, valuations under the surface are more reasonable for common stocks. Much more. “Valuations are high, but there’s value beneath the surface. ” We use the London Stock Exchange Group (LSEG) to find stocks outside of the concentrated technology sector that are expected to reach new highs. Stocks meet the following criteria: More than 10% upside from the average price target Attractive valuation: A forward P/E ratio of 1 8 or lower 5-year average P/E ratio of 18 or lower Trading within 10% of new 52-week highs Check out the names we found below To search for more stocks, use the CNBC Pro Stock Screener here. Tools. Oil and gas companies such as Marathon Petroleum Corp., Chevron Corp. and Exxon Mobil Corp. have forward price-to-earnings ratios below the stock’s five-year average price-to-earnings ratio, which generally indicates that the stock’s value should grow in the future. These major energy companies have rebounded this year as fears of a recession and weak oil demand failed to materialize. Kevin Holt, senior portfolio manager at Invesco Energy Fund, believes Chevron’s performance in the second half of the year may depend on it. Can it win its battle with ExxonMobil for Guyana’s lucrative offshore oil assets? However, ExxonMobil has outperformed Chevron this year, with its shares up 12.8%, outperforming the energy sector and the broader market. , while Chevron rose about 4.6%. Meanwhile, Marathon rose 15.4% on May 29 after ConocoPhillips agreed to acquire Citizens Financial Group in an all-stock deal. Several regional banks, including Citizens Financial Group and Fifth Third Bancorp, are up 3% and 4.8% respectively this year. Citizens Financial has a forward price-to-earnings ratio of 12.1 and a five-year price-to-earnings ratio of about 10%. 15, while Fifth Third’s forward price-to-earnings ratio is 11.1, and its five-year price-to-earnings ratio is slightly lower, about 10.8. Wolfe Research analyst Bill Carache wrote in a report on May 31, “Fifth Third is a stable company. of operators, we expect it to hold back and address its path to generating maximum alpha across our regional bank coverage over the next 12 months.” The stock includes strong loan growth, healthy reserves, repurchase capabilities and significant operating efficiencies. Carache upgraded Fifth Third to outperform and reiterated its $43 price target, which suggests about 19% upside potential from Friday’s closing price. Automaker General Motors is also among them. Analysts polled by the London Stock Exchange believe the stock has upside potential of about 18%, and the stock also trades at an attractive forward price-to-earnings ratio of about 4.77, the lowest among the stocks so far. Other attractive stocks that could hit new highs include homebuilder Pulte Corp. and insurance company Allstate.
