In This Year's Earnings Season, These 8 Stocks Are Expected To Grow Strongly.

Stocks are getting too expensive again as earnings weaken, but some notable companies in the S&P 500 appear to avoid both problems.

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Mike Wilson, a strategist at Morgan Stanley, made a warning in a note over the weekend that the stock market is trading at a level that future earnings will not be able to support.

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There are, however, a few stocks that, at least by one common yardstick, appear to be more reasonably priced than others. According to FactSet, most of the stocks on the list below have forward price-to-earnings ratios that are below 10, which means that their share price is well below what it would be if they were part of the S&P 500.

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Furthermore, the stock is well-liked by analysts, with buy ratings from at least 55% of analysts and an upside to the average price target of 10% or more, suggesting that they are likely to perform well in the future. The companies listed on this page are also expected to see an increase in earnings per share of at least 10% in the coming year.

Top Single Digit P/E Stocks in the S&P 500

• Alaska Air Group (ALK)

• Citizens Financial Group (CFG)

• Delta Air Lines (DAL)

• EOG Resources (EOG)

• EQT Corporation (EQT)

• Diamond Back Energy (FANG)

• MetLife (MET)

• Wells Fargo (WFC)

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Diamondback Energy is stock on this list in terms of its valuation metric which is the cheapest on the list, as it has a P/E ratio of only 5.6. However, analysts still expect Diamondback to more than double its earnings per share by the end of this year, which is below its recent high in November.

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Analyst Roger Read at Wells Fargo initiated coverage of Diamondback in January with an overweight rating, praising the company's returns on cash via dividends and stock buybacks, as well as the company's dividend yields.

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It is evident that FANG has a favorable capital structure based on our analysis. It should be noted that FANG faces no significant principal payments until 2026 as a result of a series of recent re-financings and the issuance of new debt to fund the Permian acquisitions. According to Read in a note to clients he wrote, this implies that the 75% [free cash flow] payout ratio can be sustained for several years to come.

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There is one stock on the list with the highest approval rating and that is Delta Air Lines. It has been found that 81% of Wall Street analysts have rated the stock as a buy according to FactSet.

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As Delta nears the end of the year, it is coming off of a solid fourth quarter, although it has warned about increased cost pressures this year. In a report he published on Feb. 8, Redburn analyst James Goodall upgraded the airline to a buy rating, citing Delta's competitive advantage on certain routes as one of the reasons for the upgrade.

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“When analyzing the domestic networks of the three U.S. airlines, we found Delta to be in the best position from a competitive standpoint,” the note said.

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Alaska Air, which has buy ratings from 80% of analysts, is another airline on the list.

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Several financial companies are also listed on the list, with Wells Fargo being the most notable among them.

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MetLife offers some attractive upside potential, according to analysts, despite its lower P/E ratio than the market as a whole due to its slower growth prospects.

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It is estimated that 65% of analysts have a buy rating for MetLife, with an average upside of 17% from current levels according to FactSet.

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