Beware these expensive stocks that analysts don't like

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Analysts are cautious of these names, which are looking costly on a price-earnings basis.

Equities remain expensive despite a higher interest rate environment, and a few names look especially costly. With the yield on the benchmark 10-year Treasury creeping back up above 4.8%, investors are worrying that the Federal Reserve will maintain constrained monetary policy for longer than expected. This convergence of factors, coupled with geopolitical turmoil and higher valuations on Wall Street is creating a difficult picture for stocks, according to JPMorgan's Marko Kolanovic.

The majority of analysts covering the stock rate it a hold. The tech hardware giant has a P/E ratio of 67.88 for the last 12 months. That compares to a five-year average P/E ratio of 19.87. IBM will post its third-quarter results on Oct. 25. UBS analyst David Vogt anticipates the company will report revenue and non-GAAP EPS below the Wall Street firm's prior forecast, according to an investor note on Monday.

 

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