The stock market is hitting record highs, but some investors are starting to worry about a potential bubble. With high valuations and a hype cycle around artificial intelligence, bearish investors are expressing concerns about the sustainability of the current market rally.
Economist David Rosenberg recently pointed out three divergences in the stock market that suggest a downturn is on the horizon. Warren Buffett’s favorite valuation signal is also nearing records, indicating that stocks may be overvalued.
From AI to chicken wings, a variety of stocks are currently trading at rich valuations. Here are the top 10 most richly valued stocks in the market right now, based on their price-to-sales ratio:
10. Trade Desk (Ticker: TTD) – Price-to-sales ratio: 22.0x, Market value: $42.7 billion
9. Palantir (Ticker: PLTR) – Price-to-sales ratio: 22.9x, Market value: $50.9 billion
8. Wingstop (Ticker: WING) – Price-to-sales ratio: 23.4x, Market value: $10.8 billion
7. Cloudfare (Ticker: NET) – Price-to-sales ratio: 25.2x, Market value: $32.7 billion
6. Crowdstrike (Ticker: CRWD) – Price-to-sales ratio: 25.4x, Market value: $77.5 billion
5. Legend Biotech (Ticker: LEGN) – Price-to-sales ratio: 35.8x, Market value: $10.2 billion
4. Nvidia (Ticker: NVDA) – Price-to-sales ratio: 37.1x, Market value: $2.26 trillion
3. Arm Holdings (Ticker: ARM) – Price-to-sales ratio: 43.7x, Market value: $128.5 billion
2. MicroStrategy (Ticker: MSTR) – Price-to-sales ratio: 58.3x, Market value: $28.9 billion
1. Astera Labs (Ticker: ALAB) – Price-to-sales ratio: 97.7x, Market value: $11.3 billion
As the market continues to climb to new heights, investors will be keeping a close eye on these richly valued stocks and the overall health of the market.
