The S&P 500 continues to reach new highs, but the market is becoming increasingly expensive, with the cyclically adjusted P/E ratio (CAPE) nearing its second-highest level ever. This raises concerns for investors seeking value, as finding bargains becomes more challenging. However, Target (TGT), Carnival (CCL), and On Holding (ONON) are highlighted as potential investment opportunities.
Target has rebounded with a 31% year-to-date gain, driven by a new CEO and strategic changes that improved sales by 6.7% year-over-year. It remains a reliable dividend payer with a yield of 3.6%. Carnival, despite facing volatility and rising oil prices, reported a 50% EPS increase and record bookings, trading at a P/E ratio below 12. On Holding, while newer to the market, has shown impressive growth with a 26% sales increase and strong profitability, trading at 42 times earnings.
For investors, these companies present opportunities in a high-priced market, particularly for those focused on long-term growth and passive income.
Source: fool.com