These stocks are still a bargain relative to the expensive S&P 500

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These stocks are still a bargain relative to the expensive S&P 500

There are still stock market bargains to be found heading into 2025, despite the S & P 500’s lofty valuation. Stocks have grown increasingly expensive as the broad market index soared in 2024. The S & P 500’s price-to-earnings ratio based on the next 12 months’ earnings is currently 22.31, according to FactSet data, compared to a three-year average forward P/E of 19.15. The S & P 500 has rallied more than 27% this year, putting the index on track to notch a second straight annual return of plus 20%. The Nasdaq Composite has added more than 34% in 2024, while the Dow Jones Industrial Average has climbed 16%. Against this backdrop, CNBC Pro screened for stocks that still offer decent value for investors in a market that remains richly valued, using the following criteria: Stocks have to sell at a discount to their S & P 500 sector and industry, using the next 12-month estimated price/earnings ratio. Shares have upside to their average 12-month price target from analysts polled by FactSet. Shares have gained at least 5% over the past month. Here is a look at some of the names that caught our attention. Shares of casino operator Wynn Resorts have ticked down marginally in 2024. Consensus forecasts from analysts polled by FactSet imply more than 20% upside for Wynn over the next 12 months. The company gave an update last month on its forthcoming Wynn Al Marjan Island resort in the United Arab Emirates, which it expects to open in 2027. WYNN YTD mountain Wynn Resorts stock. Ulta Beauty also appeared as an attractive value stock. Shares have gained about 16% over the past month but are still down 14% in 2024. The cosmetics company is coming off a third-quarter earnings beat on the top and bottom lines , despite lingering concern that rising competition will prove a persistent headwind. ULTA YTD mountain Ulta Beauty stock. Other stocks that turned up in the screen included Ralph Lauren and Enphase Energy .

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#stocks #bargain #relative #expensive

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