Heading into unchartered territory in the market, investors may take comfort in acquiring the most undervalued stocks. Primarily, the less-popular enterprises offer the advantage of being exactly that: not hogging the spotlight. On the other hand, those entities that courted significant investor dollars may be due for a correction if a downcycle materializes.

Second, a downturn just might be on the horizon. While it’s a debated topic, Morgan Stanley analysts warned about U.S. recession risks prior to this year. Considering the anxieties associated with the recent bank failures, it’s well within the realm of possibility that the market could encounter turbulence. For that, the most undervalued stocks may offer respite.

Vishay Intertechnology (VSH)

An American manufacturer of discrete semiconductors and passive electronic components, Vishay Intertechnology (NYSE:VSH) might not get the attention that other technology enterprises do. However, VSH may be an ideal choice among the most undervalued stocks because it quietly undergirds several innovations. Notably, in the trailing one-year period, VSH gained more than 18% of its equity value.

Financially, the company enjoys a series of solid performance metrics. Notably, its operating margin lands at 17.6%, beating out 68.52% of companies listed in the semiconductor industry. Also, its return on equity (ROE) hits 22.96%, reflecting an extremely high-quality business.

Regarding the main topic at hand, VSH easily represents one of the most undervalued stocks. First, the market prices VSH at a forward multiple of 7.67, below the sector median of 21.88 times. Also, VSH trades at only 1.53-times book value, ranked better than 70.75% of its peers. Finally, Stifel Nicolaus analyst Matthew Sheerin pegs VSH as a buy. The expert forecasts shares hitting $24, implying nearly 11% upside potential.

Zymeworks (ZYME)

A biotechnology firm based in Western Canada, Zymeworks (NASDAQ:ZYME) develops protein therapeutics for the treatment of cancer as well as for autoimmune and inflammatory diseases. Thanks to its groundbreaking work, ZYME rates highly among people in the know. Since the start of this year, shares soared nearly 32%. In the past 365 days, they gained nearly 86% of its equity value.

While deeply impressive, ZYME also makes a case for one of the most undervalued stocks to buy. First, shares trade at a trailing multiple of 5.61, far lower than the sector median value of 31.33. Also, Zymeworks features a price-to-sales ratio of 1.61, favorably below 89.16% of its peers. As well, ZYME trades at 5.29-times free cash flow, below the sector median of 32.05.

To be fair, Gurufocus warns that Zymeworks could be a value trap. However, the company benefits from solid stability in the balance sheet along with a super-relevant business. Moreover, analysts peg ZYME as a consensus moderate buy. Their average price target lands at $11.75, implying over 18% upside potential.

Ichor Holdings (ICHR)

Based in California, Ichor Holdings (NASDAQ:ICHR) represents a leader in the design, engineering and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment. An intriguing idea among the most undervalued stocks, Ichor carries a market capitalization of $817 million. Since the Jan. opener, ICHR gained nearly 11% of equity value.

Financially, Ichor benefits from decent stability in the balance sheet. Its Altman Z-Score hits 3.18, indicating low bankruptcy risk. Operationally, the company features a three-year revenue growth rate of 17.5%, above 65.11% of sector players.

Enticingly, the market prices ICHR at a trailing multiple of 11.75. As a discount to earnings, Ichor ranks better than 74.16% of sector players. Also, ICHR trades at 0.67-times trailing sales. In contrast, the sector median value is 2.63 times. Lastly, analysts peg ICHR as a consensus strong buy. Their average price target is $39.80, implying 35% upside potential.

Himax Technologies (HIMX)

Located in Taiwan, Himax Technologies (NASDAQ:HIMX) is a leading supplier and fabless semiconductor manufacturer. Fundamentally, Himax delivers efficient, innovative solutions for advanced arenas such as the Internet of Things and machine learning. Since the Jan. opener, HIMX gained over 15% of equity value. Still, it does have some work to do, losing nearly 20% in the trailing one-year period.

Nevertheless, the red ink helps reinforce the idea that Himax is one of the most undervalued stocks to buy. Operationally, the company comes to life with a three-year revenue growth rate of 20.8%, outpacing 72.46% of its peers. Also, its net margin stands at nearly 20%.

For the topic at hand, the market prices HIMX at a forward multiple of 11.1. As a discount to projected earnings, Himax ranks better than 89.63% of the competition. Also, HIMX trades at 1.47-times tangible book value, which is low for the industry. Turning to Wall Street, Robert W. Baird analyst Tristan Gerra pegs HIMX as a buy. The expert’s price target comes out to $10, implying 37% upside potential.

Hello Group (MOMO)

While tempting on many levels, Hello Group (NASDAQ:MOMO) represents one of the riskiest ideas among the most undervalued stocks. Billed as a leading player in China’s online social networking space, Hello Group obviously benefits from a populace nation. As well, following the Chinese government’s draconian zero-Covid policies, people will be looking to connect.

Nevertheless, MOMO stock gave up more than 8% of equity value since the Jan. opener. Also, some of the underlying financial metrics pose obvious risks; notably, long-term revenue and FCF growth rates sitting in negative territory. For the advertised topic, MOMO trades at a forward multiple of 6.43. As a discount to projected earnings, Hello Group ranks better than 95.83% of companies listed in the interactive media space. Also, it trades at only 1.05-times tangible book, which seems a huge discount.

Looking to the Street, analysts peg MOMO as a consensus moderate buy. Their average price target stands at $12.50, implying over 43% upside potential.

FGI Industries (FGI)

Headquartered in East Hanover, New Jersey, FGI Industries (NASDAQ:FGI) has a mission statement of innovation, quality and service. On its “about us” section, FGI prints 80 words of word salad until it tells the audience what it does: import wood cabinetry and bathroom fixtures for the retail market. Now, likely because of the tough housing market, FGI slipped nearly 22% since the Jan. opener.

For me, while FGI technically ranks among the most undervalued stocks, it’s also highly risky. Still, the company does post an Altman Z-Score of 3.73, indicating solid stability. Also, its ROE comes out to 26.91%, reflecting an extremely high-quality business. Moreover, the market prices FGI at 4.4-times trailing earnings, well below the sector median value of 16.18 times. Also, shares trade at 0.74-times tangible book value. In contrast, the industry median is a relatively lofty 1.74 times.

Finally, Northland Securities analyst Greg Gibas pegs FGI as a buy. The expert’s price target pings at $4, implying over 133% upside potential.

iTeos Therapeutics (ITOS)

Calling Watertown, Massachusetts home, iTeos Therapeutics (NASDAQ:ITOS) pioneers the discovery and development of highly differentiated immuno-oncology therapeutics for patients. While wildly intriguing and relevant, ITOS is only appropriate for those that want to maximize the upside potential of the most undervalued stocks. Otherwise, you’re looking at a volatile entity.

Since the start of the year, ITOS gave up over 26% of equity value. In the past 365 days, it’s down almost 57%. Unsurprisingly, its 60-month beta is 1.34, implying much greater volatility than the benchmark equities index. Nevertheless, it’s difficult to overlook iTeos’ cash-to-debt ratio of 131.21 times, which ranks better than 78.18% of its peers.

Further, the market prices ITOS at a trailing multiple of 5.36. Shares also trade at 1.93-times sales and 0.73-times book value. No matter where you look, these stats rate well below their respective industry medians. Lastly, analysts peg ITOS as a unanimous strong buy. Their average price target stands at $39.67, implying over 190% upside potential.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.