Are you looking to make informed decisions when it comes to investing in stocks with expensive valuations? Earnings momentum could be the key factor to consider, according to Piper Sandler analyst Michael Kantrowitz.
At Extreme Investor Network, we understand the importance of staying ahead of the curve when it comes to investing in the stock market. That’s why we’re here to provide you with valuable insights on how to identify stocks with positive upward earnings revisions that could potentially maintain their lofty valuations.
Kantrowitz recently published two lists of stocks with expensive price-to-earnings multiples, categorizing them as either “hold” or “fold.” The hold list includes companies like Nvidia and Berkshire Hathaway, which have strong EPS revision momentum and are expected to continue trading at high valuations. On the other hand, the fold list features companies like Home Depot and McDonald’s, which have negative earnings revision ratios and may experience a pullback in their valuations.
Nvidia, a chipmaker in the artificial intelligence space, has seen its shares soar over 175% this year and is expected to continue climbing higher. Berkshire Hathaway’s Class B shares are also on track for their best year since 1998, with analysts forecasting further upside.
In contrast, Home Depot and McDonald’s have struggled to keep up with the market this year, with analysts anticipating potential downside for both companies.
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