# cheapest S&P 500 stocks with >25% upside for August investors

**Published:** 2026-08-02T11:08:55.280Z  
**Topic:** S P 500  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/ae89dd9a-93cd-4233-bb52-8df1eef045f5

Discover the S&P 500 stocks priced lowest relative to fair value, showing upside of 25%‑130% as of July 2026 – a guide for value‑seeking investors.

The most striking fair‑value gap in the S&P 500 is CrowdStrike, whose fair‑value upside sits at 131.5% versus its current price, highlighting a deep discount that could fuel near‑term gains as August earnings roll out【2】.  

| At a glance | |
|---|---|
| Top fair‑value upside | 131.5% (CrowdStrike) |
| Next highest upside | 79.0% (Charter Communications) |
| Minimum upside threshold | 25% (screening criterion) |
| S&P 500 earnings beat rate | 85% of companies beat expectations【1】 |

## Fair‑value gaps and the earnings backdrop  
Investors using InvestingPro’s Fair Value metric filtered the S&P 500 for stocks with at least a 25% upside and low‑to‑medium valuation uncertainty. The screen produced a list led by CrowdStrike (131.5% upside) and followed by Charter Communications (79.0%) and lululemon (70.5%)【2】. These percentages compare the current market price to the model’s intrinsic estimate, implying that the market is pricing these firms at roughly half or less of their calculated fair value.  

The broader market context is a robust earnings season: 85% of the roughly 300 S&P 500 companies that have reported so far beat analysts’ expectations, and aggregate corporate profits are on track to grow more than 47% year‑to‑date【1】. Strong earnings momentum can help lift undervalued names, especially those with solid balance sheets and positive recent earnings—both required for S&P 500 inclusion【2】.

## Momentum and market sentiment heading into August  
Momentum indicators have recently surged, with the iShares MSCI USA Momentum Factor ETF (MTUM) posting a 5.5% gain on Thursday and a further 1.1% rise on Friday after a sharp rebound from oversold levels【1】. Although July saw a 12% decline in MTUM, the recent bounce suggests short‑term upside potential for momentum‑sensitive stocks, including the undervalued picks. Analysts note that the next few days are critical for confirming whether this momentum can sustain through the August data calendar, which features a jobs report and a slate of earnings from major corporates such as McDonald’s, Costco, and Disney【1】.

## What to watch  
- **U.S. jobs report (July non‑farm payrolls)** – consensus expects 87,500 jobs added, with the unemployment rate edging to 4.3%【1】. A weaker-than‑expected report could pressure equities, testing the resilience of undervalued stocks.  
- **Key earnings releases** – upcoming results from high‑profile firms like Advanced Micro Devices, Costco, and Disney will shape market direction and may provide catalysts for the fair‑value gaps identified.  
- **Momentum ETF performance** – continued strength in MTUM could reinforce upside for the screened stocks; a stall or reversal would signal broader market hesitation.  

The sizable fair‑value discounts identified suggest that, if earnings momentum holds and macro data remain supportive, these S&P 500 stocks could deliver meaningful upside in the coming weeks. However, the outcome hinges on whether August’s economic releases and earnings reports sustain the current bullish tilt.

## Sources
1. CNBC — [August kicks off next week with jobs report, earnings as momentum recovers. Here's what's ahead](https://www.cnbc.com/2026/07/31/stock-market-next-week-outlook-for-aug-3-7-2026.html)
2. Investing — [Top Undervalued S&P 500 Stocks (July 2026) - Investing.com](https://www.investing.com/academy/stock-picks/best-sp-500-undervalued-stocks/)

---
Cite as: TrendWatcher, "cheapest S&P 500 stocks with >25% upside for August investors", https://www.trendwatcher.in/article/ae89dd9a-93cd-4233-bb52-8df1eef045f5