The S&P 500 index has risen 17% in 2024, currently trading at a high price-to-earnings (P/E) ratio of 27. However, the “Magnificent Seven” stocks account for about one-third of the index with an average P/E of 39, suggesting that the remaining S&P 493 may be undervalued at around 21 to 22 times earnings.
Among notable investment opportunities, Dutch Bros (NYSE: BROS) has grown its store count from 450 to over 900 since 2020, with plans for over 4,000 locations in the U.S. Chewy (NYSE: CHWY), the largest U.S. pet retailer, is generating profits and exploring profitable revenue streams, trading at 21 times forward earnings. Vail Resorts (NYSE: MTN), despite a 50% drop from its 2021 highs, maintains a competitive edge with no new major ski resorts built in over 40 years and offers a 4.7% dividend yield.
