With stock prices near all-time highs, it may be time to take profits. US stocks get off to a strong start in his 2024. The S&P 500 is up more than 6% this year and topped his 5,100 mark for the first time last week. Meanwhile, the Dow Jones Industrial Average also closed at an all-time high last Friday. But that same strong performance is making some stocks look expensive. We used the CNBC Pro Stock Screener to search for S&P 500 constituent stocks that look expensive compared to the broader market. Below are some of the characteristics we searched for. The 12-month price-to-earnings ratio is above his five-year average. Its forward P/E ratio is higher than the S&P 500 (16.6). Easily outperforming the market. : Up more than 15% annually. The names that have surfaced so far are: Wall Street’s biggest artificial intelligence darling has hit the market with its most expensive stock. Nvidia, whose stock is up about 59% this year, hit a new all-time high after last week’s explosive earnings report. This has given investors confidence that the recent market rally may still have some trajectory. However, the company’s trailing twelve month P/E TTM of 65.5 suggests that the stock is overvalued, especially when compared to past earnings. The forward P/E ratio of 35.2 also suggests that the stock is overvalued. Eli Lilly stock also emerged as an expensive stock. This month, the company posted strong sales and bottom line growth in the fourth quarter, helped by strong performance of its new weight loss drug Zepbound. However, Eli Lilly’s trailing 12-month P/E ratio was 130.5, indicating that the stock is overvalued. Meanwhile, the forward P/E of 69.5 suggests investors may need to reduce their exposure from here. Merck and Advanced Micro Devices also made the list.
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