UBS: Buy these 10 undervalued stocks to cash in on market volatility

Traders react to the Supreme Court’s decision at the post that trades WellPoint on the floor of the New York Stock Exchange, June 28, 2012.REUTERS/Brendan McDermid

Markets are surging back this week, but there’s still plenty of money to be made from last week’s rout.

UBS has issued clients a list of stocks which fell in value and offer big returns as a result.

All of the stocks listed declined 5% or more during the sell-off, meaning their price-to-earnings forecast for the next 12 months has ticked up.

The next 12 months price-to-earnings (NTM P/E) forecast is calculated by dividing a current stock’s price by its forecast earnings over the next year.

So if the stock price for Amazon was $100 and its predicted earnings per share (EPS) was $30, the NTM P/E would be 30.

Here are 10 UBS bargain stock picks, ranked according to the size of their NTM P/E.