The S&P 500 is attractively valued after a deep sell-off and with bond yields still historically low, says JPMorgan's head of stock research

• The S&P 500's value remains attractive even after a recent rebound lifted its price-to-earnings ratio sharply, JPMorgan said.
• The broad index's P/E ratio has jumped but is "still cheap considering low bond yields," according to a research note Thursday.

The S&P 500's value remains attractive even after a recent rebound lifted its price-to-earnings ratio sharply, according to analysts from JPMorgan.

The broad index's P/E ratio has jumped to 16.9 from June's low of 15.5, according to a research note Thursday. While that is in line with historical levels, it's "still cheap considering low bond yields," analysts led by Dubravko Lakos-Bujas said.

JPMorgan also said the S&P 500 is "better than fairly valued" as the index has shifted to a mix of stocks that are less cyclical with higher profit margins over the last few decades.

That means possible good news for investors, after the S&P 500 saw its worst first half since 1970 amid high inflation and growing recession fears.

Meanwhile, JPMorgan doesn't full-year earnings declining even after a slew of disappointing second-quarter results that slammed high-profile stocks this week. As downgrades to guidance hit estimates, overall earnings should look stable, they said.

"In sum, if economic growth and rates hold, we believe the S&P 500 is well supported at current levels," the note said.