Some hidden gems still exist within the large numbers of stocks trading at sky-high prices, according to Wolfe Research. Since last fall, a tech-led rally has propelled the equity market into the stratosphere. Stocks are now hovering near their all-time record highs thanks to stocks that are adjacent to artificial intelligence. Consider that Nvidia is up roughly 78% this year.
To be included in the basket, the stocks had to meet the following criteria: High dividend: Dividend yield at least two-thirds of the company's AAA bond yield Strong earnings: Earnings yielding more than twice the company's AAA bond yield Low debt: Debt-to-tangible book value less than 1 Forward price-to-earnings ratio of 10 or less With a dividend yield of roughly 5%, automobile manufacturer Ford Motor was one name on the deep value list.