As the market struggles to make a comeback this quarter, investors may want to steer clear of some popular stocks that have gotten too frothy. The three major U.S. indexes are lower so far this month as Wall Street's concerns about inflation and the Federal Reserve's restrictive monetary policy path remain high. The S & P 500 and tech-heavy Nasdaq are down more than 4% this month, while the 30-stock Dow has lost about 5%.
Pro used FactSet data to screen for stocks in the S & P 500 with the largest premium valuation compared to history: a higher current forward price-earnings ratio versus their 5-year average forward P/E. Shares of these companies would be considered overvalued, meaning they're trading at a current price that is not justified by their P/E ratio.
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