XMHQ - S&P 500 Four Under Five

2024-06-30 00:30:00 ET

Summary

• The S&P 500's strong first half, with gains exceeding 15%, has pushed its valuation even higher.
• Four stocks in the S&P 500 have a lower earnings multiple than the 4.9 percentage point gap between the average and median multiple of the index’s components.
• While VTRS and GM have been winners, the other two ‘cheap’ stocks have only gotten cheaper over the last year.

The S&P 500's ( SPX ) strong first half, with gains exceeding 15%, has pushed its valuation even higher. The average P/E ratio based on current year expected earnings now sits at 22.7, while the median is nearly five points lower at 17.8. This gap highlights the concentration of high valuations among the largest companies in the index....

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