While the artificial intelligence boom brought stocks to record highs in the first half of the year, concern has mounted that valuations are stretched. Strategists polled by CNBC Pro say that market gains in the rest of 2024 may be harder to come by , forecasting that the S & P 500 will add just 1% based on median price targets. Some market pundits have noted anxiety over valuations, saying price-earnings ratios and other yardsticks may be getting ahead of themselves.
They also highlight signs of exhaustion in some formerly high-flying stocks. That forecast comes as Nvidia entered a correction earlier this week, adding to worries dating from late last year that too few stocks have participated in the latest up-move. Against this backdrop, CNBC Pro screened for some of the most expensive stocks on Wall Street, using the following criteria as a filter: Current price-earnings ratio is more than 50% higher than the stock's 5-year average price-earnings ratio Each stock's current forward price-earnings ratio is above the S & P 500's forward price-earnings ratio of 21 Readers can customize their screen using the CNBC Pro Stock Screener tool here .
Data in the table below is current as of Tuesday. Artificial Intelligence plays Top AI plays were among the list of expensive stocks in the S & P 500, including Broadcom , Lam Research , Intel and Super Micro Computer . All of the AI plays on the list have trailing 12-month price-earnings ratios more than double their five-year average.
B.