Parts of the market are getting pricey. But analysts like these 4 cheap stocks

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'Look at what's out of favor,' says one veteran investor.

Markets have rallied this year despite economic uncertainty in the United States. The S & P 500 is up around 10% so far this year, while the Nasdaq has soared about 24%. But only a few stocks — namely mega-cap tech — are responsible for most of the gains , according to analysts.

"We are using short term volatility as a buying opportunity," said Adam Coons, chief portfolio manager at Winthrop Capital Management, in a Monday note sent to CNBC. One stock he named was U.S. semiconductor firm Qualcomm . Chipmakers have been popular among investors as a play on AI, and Qualcomm has made developments in the application of the internet of things.

 

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