2023-07-27 08:00:00 ET
With the S&P 500 up more than 18% this year, it's getting very close to surpassing its previous high, which is about 5% above current levels. When that happens, we'll be back in a bull market . On average, valuations are just getting back to normal. The S&P 500's price-to-earnings ratio stands at 23 right now, which is a typical pre-pandemic valuation.
Still, some stocks do look a bit overvalued at this point even though the underlying companies have some wonderful businesses. Three in that category right now are Shopify (NYSE: SHOP) , MercadoLibre (NASDAQ: MELI) , and Nu Holdings (NYSE: NU) . In the event of a market pullback, you'll want to load up on these stocks.
For any e-commerce company whose name isn't Amazon , getting online can be a challenge. Shopify offers tools and packages to make it a cinch, with turnkey websites and full payment options. It's no wonder it counts millions of clients and keeps growing.
For further details see:
3 Stocks to Add to Your Portfolio in a Market Pullback