By Ben Steverman

Finding Stocks with Upside Potential

After the stock market rockets 58% in a little over seven months, it gets tough to find stocks that could still be called cheap.

But just because the broader market has rallied doesn't mean that all equities have gone along for the ride. In search of stocks that could still be called bargains, BusinessWeek picked stocks that still look attractively priced even after the recent rally.

Using data from Capital IQ (as of Oct. 21), we first sorted for stocks that are still trading well below their prices on Oct. 9, 2007, when the market hit its record high before the start of the recession. Second, we gave extra points for stocks that have lagged the broader market since its big market rally, which started Mar. 9, 2009. Finally, we looked at Wall Street analysts' average target price (according to Capital IQ) and sorted out those stocks that don't have at least a 10% predicted upside from this point.

The 25 stocks in this slide show may be cheap for a reason: Many have serious problems that make them risky investments. But given their track records over the past two years, they also still have plenty of ground to make up—and thus the opportunity for considerable upside. Our company snapshot pages can help you dig a little further into each name on the list.