What are the most overvalued stocks right now?
Based on the latest S&P 500 monthly data, the market is overvalued somewhere in the range of 92% to 154%, depending on the indicator, up from last month's 88% to 148%. This is the highest range we have seen since January 2022.
- Wingstop WING.
- Celsius Holdings CELH.
- Southwest Airlines LUV.
- Vistra VST.
- Dell Technologies DELL.
Based on the latest S&P 500 monthly data, the market is overvalued somewhere in the range of 92% to 154%, depending on the indicator, up from last month's 88% to 148%. This is the highest range we have seen since January 2022.
Disadvantages of Overvalued Shares
Being caught in a value trap, by which an investor might incur considerable losses. The requirement of market proficiency to determine whether a stock is overvalued or not.
| Symbol | Name | Price (Intraday) |
|---|---|---|
| UA | Under Armour, Inc. | 6.30 |
| AEM | Agnico Eagle Mines Limited | 62.49 |
| YUMC | Yum China Holdings, Inc. | 36.88 |
| URBN | Urban Outfitters, Inc. | 37.07 |
Amazon's performance remains strong, with robust earnings and reasonable valuation metrics suggesting the stock is not overvalued.
An overvalued stock has a current price that is not justified by its earnings outlook, known as profit projections, or its price-earnings (P/E) ratio. Consequently, analysts and other economic experts expect the price to drop eventually.
By the same token, though, holding on to a company that is overvalued is a risk. In these situations, it's typically best to sell your stock and be happy with the profits you've made no matter what the stock does in the future.
Overvalued stocks are the ones that trade above their intrinsic value or their actual worth, due to which it has a great chance of experiencing a sudden sharp price fall at some point of time. The most important thing about overvalued stock calculation is the P/E ratio.
| SNo. | List of Most Undervalued Stocks | Sector |
|---|---|---|
| 1. | Avenue Supermarts Ltd | Retail - Department Stores |
| 2. | Coal India Ltd | Mining - Coal |
| 3. | Varun Beverages Ltd | Soft Drinks |
| 4. | Eicher Motors Ltd | Trucks & Buses |
Which stock is best undervalued or overvalued?
Generally, undervalued shares are favored over overvalued ones, as the investors buy low and sell high. If the company is performing well, it can give promising returns. Buying an overvalued share doesn't have this advantage, as the price returns to its intrinsic value, which is lower.
Equally, the all-important price-to-earnings-to-growth (PEG) ratio is 3.6 for TSLA. This is by no means an enticing ratio, and it infers that Tesla stock is overvalued considerably.
| Stock | Expected Change in Stock Price* |
|---|---|
| Tesla Inc. (TSLA) | 61% |
| Mastercard Inc. (MA) | 14.2% |
| Salesforce Inc. (CRM) | 7.2% |
| Advanced Micro Devices Inc. (AMD) | 11.3% |
| S.No. | Company | Industry/Sector |
|---|---|---|
| 1. | Tata Consultancy Services Ltd | IT - Software |
| 2. | Infosys Ltd | IT - Software |
| 3. | Hindustan Unilever Ltd | FMCG |
| 4. | Reliance Industries Ltd | Refineries |
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Cons. Finvest | 243.65 |
| 2. | West Coast Paper | 623.30 |
| 3. | Andhra Paper | 492.20 |
| 4. | C P C L | 938.00 |
| Symbol | Holdings | |
|---|---|---|
| Paramount Global Class B | PARA | 63,322,491 |
| Sirius XM Holdings Inc | SIRI | 40,243,058 |
| Snowflake Inc | SNOW | 6,125,376 |
| SPDR S&P 500 ETF Trust | SPY | 39,400 |
| Stock | Sector | Trailing 12-month dividend yield* |
|---|---|---|
| Stanley Black & Decker Inc. (SWK) | Industrials | 3.5% |
| Atmos Energy Corp. (ATO) | Utilities | 2.7% |
| T. Rowe Price Group Inc. (TROW) | Financials | 4.3% |
| Chevron Corp. (CVX) | Energy | 3.9% |
| Company (ticker) | Analysts' consensus recommendation score | Analysts' consensus recommendation |
|---|---|---|
| UnitedHealth Group (UNH) | 1.48 | Strong Buy |
| Uber Technologies (UBER) | 1.49 | Strong Buy |
| Assurant (AIZ) | 1.50 | Strong Buy |
| Bio-Rad Laboratories (BIO) | 1.50 | Strong Buy |
Is Apple stock a Buy, Sell or Hold? Apple stock has received a consensus rating of buy. The average rating score is Aaa and is based on 67 buy ratings, 30 hold ratings, and 2 sell ratings.
The move helps Bezos avoid a state-level 7% capital gains tax that the state of Washington, where he's lived for years, instituted three years ago. Bezos' recent sale of Amazon shares valued at a substantial amount follows a prescribed stock sale plan allowable for wealthy corporate insiders.
Why is Jeff Bezos selling so much Amazon stock?
Experts say the sales make sense. Amazon's share price is up, and Bezos's recent move from Seattle to Miami means he can sell without worrying about Washington state's new capital gains tax. “It's an optimal time to make this move,” said Neil Saunders, managing director of analytics company GlobalData.
Typically, the average P/E ratio is around 20 to 25. Anything below that would be considered a good price-to-earnings ratio, whereas anything above that would be a worse P/E ratio.
At Morningstar, we typically suggest that the best stocks to buy are undervalued shares of companies with fundamental advantages that should allow them to effectively compete for decades. The Morningstar Economic Moat Rating encapsulates a company's competitive advantages.
Price to Earnings Ratio
PE Ratio is one of the metrics used to identify undervalued stocks. The PE ratio compares the current market value of a stock with its earnings per share. Typically, undervalued stocks will have a low PE ratio. Remember that the standard PE ratio differs from industry to industry.
Consider shorting: Experienced investors may consider shorting an overvalued stock. This involves borrowing shares, selling them at the current high price, and repurchasing them later at a lower price, profiting from the difference.
