Investors Pay Up To Own These Six Promising Stocks

Curious which S&P 500 stocks investors think are worth a premium? Just look at the ones with the highest valuations.

Six S&P 500 stocks — including Palantir Technologies (PLTR), Tesla (TSLA) and CrowdStrike (CRWD) — carry forward P-E ratios of 100 or more, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. That's a rich premium if you consider the average S&P 500 stock sports a P-E of just 23.7 times expected profit in the next 12 months.

↑ X NOW PLAYING Beating The Market: How To Find Outperforming Stocks

"Good first-quarter numbers are of course better than the alternative, but as investors, we drive looking through the front windshield, not the rearview mirror," said Jeffrey Buchbinder, chief equity strategist at LPL Financial.

Paying Up For S&P 500 Quality

Now that the S&P 500 is in the black again this year, investors appear willing to pay up for stocks with bright prospects.

Defense software firm Palantir seems ideally situated. The stock is up 63% this year and its business is perfectly positioned for a Trump administration. As a result, investors are willing to pay nearly 200 times what the company is seen making in 2025. That's the highest forward P-E of any S&P 500 stock right now.

That gives the stock a perfect 99 RS Rating. And analysts think profit will rise 42% in 2025 and 26% in 2026.

Rounding Out The Top

Tesla, though, is right behind Palantir with a P-E of 172.

The stock's high valuation is left over from last year. This year, shares are down 10% on weak demand in the U.S. and overseas. Nonetheless, the stock still sports an RS Rating of 95. But analysts think Tesla's profit will fall 13% this year. They're awaiting the 50% rebound in 2026.

Also in tech, investors are paying up for security firm CrowdStrike. This stock has a forward P-E of 137. CrowdStrike is running an RS Rating of 94. And while analysts think earnings will sink 11% in fiscal 2026, they're looking for 32% growth in 2027.

Remember, though, that P-E ratios aren't a good market-timing tool. But they do show you where other investors think the premium stocks are.

S&P 500 Stocks With Highest Forward P-E Ratios

Sources: S&P Global Market Intelligence, IBD