Several stocks are still ripe for the picking even as the broader market reaches record-high levels. The S & P 500 and Nasdaq Composite rallied to all-time-highs Wednesday as a lighter-than-expected April consumer inflation report fueled investor sentiment. The broader market and the 30-stock Dow Jones Industrial Average are up more than 5% each this month, while the Nasdaq has advanced about 6.5%. Using the CNBC Pro Stock Screener Tool , we searched for stocks that are still considered “cheap” relative to the broader market and meet the following criteria: Up 20% or more year to date Lower valuation than the S & P 500: forward price-to-earnings ratio of less than 21 Price target that implies an upside of 10% or more Airlines Delta Air Lines and United Airlines , which have each gained more than 30% this year, made the cut. Analysts’ consensus price target on United giving the company the highest potential upside of the lot, at roughly 24%. HSBC analyst Achal Kumar recently initiated coverage on Delta alongside peers United and American Airlines , but named Delta its preferred stock in the sector. Kumar’s $72.80 price target suggests 37% potential upside for the stock. “Delta has the strongest competitive positioning at all of its key hubs and holds almost a 70-75% market share at its top 6 hubs, where it has deployed more than 50% of its capacity. It has the highest penetration in the premium traffic segment among the three U.S. full-service carriers,” Kumar pointed out, saying that airlines should benefit from a continued recovery in corporate travel and strong demand for international vacations. Digital storage stock Western Digital also made the list. Shares have advanced 43% year to date, the most of the group, and analysts’ consensus forecast implies roughly shares can gain another 15.2% over the next 12 months. The company posted a strong fiscal third quarter report, which led Benchmark analyst Mark Miller to upgrade shares to buy last month. Stronger pricing for semiconductors should fuel another rally for the stock, the analyst said. Automotive manufacturer General Motors has the lowest forward price-to-earnings ratio of the group at about 4.98. Shares are up more than 26% this year, significantly outperforming the S & P 500. Wall Street firms, including Citigroup and Bank of America, think General Motors can take on larger share in the electric vehicle market .
