From Nasdaq Corporation

September 17, 2024 07:08:00 AM:

Investors look beyond price to gauge opportunities in the market, focusing on the valuation of asset classes like stocks. Premium valuations are seen in stocks like CAVA Group Inc. (NYSE: CAVA), Booking Holdings Inc. (NASDAQ: BKNG), and Coinbase Global Inc. (NASDAQ: COIN) due to perceived quality and growth potential.

CAVA Group Inc. (NYSE: CAVA) is gaining attention in the market with a premium valuation compared to Chipotle Mexican Grill Inc. (NYSE: CMG). The high price-to-earnings ratio of CAVA reflects its growth in total locations, leading to increased efficiencies and margins.

Wall Street analysts project up to 18.6% earnings per share growth for CAVA in the next 12 months due to its significant momentum and growth potential.

Booking Holdings Inc. (NASDAQ: BKNG) is positioned to benefit from rate cuts by the Fed with over 40% of its revenue coming from European markets. The company’s premium valuation reflects anticipated growth and potential from a weaker dollar boosting European travel demand.

Coinbase Global Inc. (NASDAQ: COIN) could see a price rally as lower interest rates drive risk-on attitudes, benefiting cryptocurrencies like Bitcoin. The stock, trading below its 52-week high, has room for growth with a P/E ratio higher than the sector average, signaling upside potential.

Read more at Nasdaq: 3 Stocks the Market Is Willing to Overpay for Right Now