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Tech stocks have been having a breakout year after a difficult end to 2022. While many tech stocks have surged year to date, some are trading cheaper than their peers. The S & P 500 tech sector is the best performer year to date, jumping about 33% in 2023. In contrast, the broad market index has gained 9.5% during the same period. With these gains in mind, CNBC Pro used FactSet data to screen for companies with the lowest forward price-earnings ratios relative to the average in the S & P 500 tech sector. Here are the 10 cheapest stocks we found — and where analysts see them headed. Although the VanEck Semiconductor ETF has already surged 45.2% year to date, several chip companies are still among the cheapest stocks in the broad market index. Qualcomm , Skyworks Solutions , Microchip Technology , NXP Semiconductors and On Semiconductor all made the list. Among the chip names, Skyworks Solutions is the cheapest stock, with a P/E ratio of 11.04. Analysts on average are overweight on the stock, according to FactSet data. Notably, the company also has the smallest market cap out of the selection of chip companies. While shares are up more than 15% in 2023, they have fallen 3.3% over a 12-month period. NXP Semiconductors is another chipmaker on the list. The Dutch company is trading at relative 12-month P/E ratio of 0.48. Analysts are also overweight on NXP. Shares are up more than 14% year to date. However, the stock is in the red over a 12-month period, down more than 7%. Hewlett Packard Enterprise is the cheapest tech stock on the list. The company is trading at a relative P/E ratio of just 0.27 compared to the broad market tech sector. To be sure, the average analyst rating on shares is a hold, according to FactSet data. Refinitiv analysts estimate the stock has 11.2% upside from Friday’s close. Shares are down almost 4% in 2023. The stock has declined 2.8% over the past 12 months.
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