• These undervalued stocks have solid long-term prospects and can beat the market in the next month.
• Beyond Meat (BYND): Diversifying into the plant-based chicken segment to meet growing demand for meat substitutes.
• Innovative Industrial Properties (IIPR): This REIT offers an alternative route to participating in the cannabis sector.
• Salesforce (CRM): The cloud-based software company made significant acquisitions that will create new cross-selling opportunities.

Investor sentiment has become depressed on the Street. In particular, the market correction has been substantial for the tech-heavy Nasdaq 100 index, leading to a decline of more than 20% year-to-date (YTD). Against this backdrop, bargain hunters are searching for undervalued stocks to buy that could gain traction in the coming months.

Meanwhile, analysts are debating if a recession and a bear market could be around the corner. In recent days, Morgan Stanley (NYSE:MS) has warned investors that declines could get uglier for the S&P 500 index as well.

Proper diversification is the key to to protect your hard-earned cash in uncertain times. It is also important to remember there is always a bull market somewhere on Wall Street.

Buying physical assets or stocks that give access to such names is one option. Examples would include real estate, real estate investment trusts (REITs) or commodities like precious metals. For some investors, fine art could also be a venue to consider. These assets would act as a hedge against inflation.

Another possibility is growth stocks that have fallen out of fashion in recent months. After all, their long-term prospects could be gamechangers for many portfolios. Similarly, established tech names that have recently come under pressure also need your attention.

With that information, here are three undervalued stocks that look primed to beat the market in May:

Beyond Meat (BYND)

Our first undervalued stock of today is Beyond Meat (NASDAQ:BYND), the well-known producer of plant-based meat substitutes. Its products include alternatives for burgers, sausage, ground beef and chicken. The company aims to replicate the look and taste of meat.

Beyond Meat released fourth-quarter 2021 results on Feb. 24. Revenue declined 1.2% year-over-year (YOY) to $101 million. Adjusted net loss jumped to $1.27 per share, compared with a loss per share of 34 cents in the prior-year period. Cash and equivalents ended the period at $733 million.

Investors are concerned that sales growth has significantly slowed over the last two quarters. Fourth-quarter sales to supermarkets declined 20% in the U.S.

On the positive side, Beyond Meat is currently focused on diversifying into the plant-based chicken segment, which could mean increased revenue. Management expects demand to recover once new products hit the market in 2022.

BYND stock has tanked 71% over the past year and 40% YTD. Shares are trading at 5.1 times current sales. Meanwhile, the 12-month median price forecast for Beyond Meat stands at $45.

Innovative Industrial Properties (IIPR)

Next on the list is Innovative Industrial Properties (NYSE:IIPR), a net-lease REIT that offers real estate facilities for state-licensed and legal operators in the cannabis industry. This REIT owns 108 properties totaling 8.1 million square feet. 

IIPR announced Q4 2021 results on Feb. 23. Revenue increased 59% YOY to $58.9 million. Net income per diluted share was $1.14, up from 91 cents in the prior-year quarter. Adjusted funds from operations (FFO) per share increased 42% YOY to $1.85. Cash, equivalents and short-term investments ended the period at $406 million.

As more states continue to legalize recreational cannabis sales, IIPR stock is well-positioned to benefit from this potential growth. For example, management has added four new properties during the first quarter. The REIT enjoys an unparalleled average lease duration of 16.6 years, the best in the industry.

Yet IIPR stock has declined more than 40% YTD. Many investors would be interested to know it generates an attractive dividend yield of 4.7%. Meanwhile, the 12-month median price forecast for Innovative Industrial Properties is at $250.

Salesforce (CRM) 

The last in our list of undervalued stocks is Salesforce (NYSE:CRM), the customer relationship management (CRM) software leader. This Dow 30 member offers enterprise cloud computing solutions to help businesses maintain and improve relations with clients. For instance, its Customer 360 platform utilizes artificial intelligence (AI)-powered software that streamlines data across different departments on a single platform.

Salesforce issued Q4 FY22 results on March 1. Revenue grew by 26% YOY to $7.3 billion. Adjusted diluted earnings per share came in at 84 cents, down from $1.04 a year ago. Cash and equivalents ended the quarter at $5.5 billion.

The company controls more than 20% of the global CRM market, exceeding the combined shares of its four closest competitors: Oracle (NYSE:ORCL), Microsoft (NASDAQ:MSFT), SAP (NYSE:SAP) and Adobe (NASDAQ:ADBE).

Meanwhile, Salesforce has been growing both organically and through acquisitions. For example, the $27.7 billion acquisition of enterprise messaging platform Slack could help the company reach $32 billion in revenue next year. Management forecasts doubling annual sales to $50 billion by fiscal 2026.

However, like most tech names, CRM stock has lost 29% YTD. Compared to 2021, shares offer better value at 36.6 times forward earnings and 6.3 times current sales. Finally, the 12-month median price forecast for Salesforce stands at $300.

On the date of publication, Tezcan Gecgil 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.