Is Now a Good Time to Buy Stocks?
After a monster run in 2024, U.S. stocks have kept climbing in 2025. The S 500 and the Nasdaq Composite set fresh highs in September. Valuation has expanded with the rally. FactSet pegs the S 500 index's forward price-to-earnings ratio at roughly 22.5 -- above its five- and 10-year averages -- reflecting lofty expectations and little room for disappointment. Meanwhile, many widely owned growth stocks have seen their shares surge even faster.
That backdrop naturally raises a basic question: Should investors be buying stocks here? The short answer is yes -- with restraint. Chasing what is already expensive could prove unrewarding. But taking a hard look at high-quality names that corrected this year is not a bad idea. Following are two stocks -- Lululemon Athletica (NASDAQ: LULU) and Old Dominion Freight Line (NASDAQ: ODFL) -- that offer a more balanced risk-reward in this market, along with one that shows why caution still matters.
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Source Fool.com
