5 High P/E Stocks Under the 200-Day SMA Noor Ul Ain Rehman Fri, November 13, 2026 at 9:39 AM EST 9 min read ^GSPC -0.62% AVGO -5.27% UBER +0.82% ASML -1.20% INTC -4.62% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
A high price-to-earnings ratio usually reflects substantial expectations for a company's future earnings. But what happens when those expectations remain elevated even as the stock falls below its long-term trading average? That disconnect has become particularly relevant following the recent technology selloff, which has pressured several companies with strong growth prospects but demanding valuations.
The retreat has been especially visible in stocks exposed to artificial intelligence and semiconductor spending. Reuters reported on November 9 that a "month-long swoon" in technology and AI-related stocks in the week ended with the biggest one-day drop for the S&P 500 technology sector in more than six years.
The primary concern for investors is the Democratic victories in the midterm elections, which may lead to sluggish data-center spending, which makes up the center of the market rally. In other news, we compiled a list of the 10 Best Healthcare and Insurance Stocks To Buy Following the 2026 Democratic Midterm Sweep. Access the complete list here for free.
The 200-day simple moving average provides another perspective on these developments. By averaging a stock's closing prices over approximately 200 trading sessions, the indicator helps investors assess its longer-term price trend. A stock trading below this level may be experiencing sustained selling pressure, although the technical signal alone says little about whether its underlying business is undervalued.
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This holds significance for investors when examining companies with elevated trailing P/E ratios. Some are established businesses generating substantial cash flow, while others have earnings that remain small relative to their market valuations. In both cases, a decline below the 200-day moving average does not necessarily make the stock inexpensive.
So what are the best high P/E stocks under the 200-Day SMA? Access the expanded list of 10 High P/E Stocks Under the 200-Day SMA. You can see the top 5 stocks below.
To compile our list of the 10 High P/E Stocks Under the 200-Day SMA, we screened publicly traded companies to identify stocks trading below their 200-day simple moving averages. We then reviewed Yahoo Finance's trailing price-to-earnings ratios, retaining companies with trailing P/E ratios of at least 30 or negative trailing earnings. The selected stocks were ranked in ascending order according to the number of hedge funds holding stakes in them, based on Insider Monkey's hedge fund ownership data.
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Number of Hedge Fund Holders: 137
Applied Materials, Inc. (NASDAQ:AMAT) stands to benefit from increasingly complex semiconductor manufacturing processes, particularly those associated with advanced memory, leading-edge logic, and chip packaging. Its equipment is used in multiple stages of semiconductor production, making the company a supplier of manufacturing technologies rather than finished chips.
A key element of its investment case is the growing importance of materials engineering. As manufacturers seek improvements in chip performance and energy efficiency, Applied Materials has been developing equipment intended to address challenges in advanced packaging and high-bandwidth memory production.
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Its third-quarter fiscal 2026 results demonstrated the financial strength of this business. Revenue increased 25% year over year to $9.12 billion, while GAAP operating margin improved to 33.7% from 30.6%. The improvement in profitability is particularly relevant because growing manufacturing complexity does not automatically translate into higher returns for equipment suppliers. Applied Materials has also expanded collaborative research through its EPIC Center, which reached 11 engagements with semiconductor companies, universities, and other technology partners.
However, equipment purchases remain tied to manufacturers' capital expenditure plans. Sustaining growth will require continued customer investment in advanced production technologies, while maintaining the margin improvements already evident in reported results.
Number of Hedge Fund Holders: 138
Intel Corporation (NASDAQ:INTC) represents a different investment case from the profitable semiconductor equipment companies on this list. The chipmaker is attempting to strengthen its competitive position in processors while expanding its manufacturing and foundry capabilities.
Intel's negative trailing earnings make it eligible for this screen despite the absence of a positive trailing P/E ratio. Its latest quarterly performance, however, showed improvements in several operating areas. According to its third-quarter 2026 results, revenue increased 21% year over year to $16.5 billion. Data Center and AI revenue rose 78%, while the company reported a GAAP operating margin of 15.3%, compared with 5.0% a year earlier. Access our complete list of the best stocks that could skyrocket in 2027 here for free.
The contrast between its quarterly profitability and negative trailing earnings highlights why Intel cannot be evaluated using the same earnings-multiple framework as consistently profitable chipmakers. Its foundry ambitions remain a major part of the longer-term business strategy. Intel has continued advancing its manufacturing roadmap, including releasing a process design kit for its 14A technology.
Yet manufacturing expansion requires substantial investment, and the company is still navigating pressure in its client computing business. Intel's ability to generate consistent returns from its manufacturing investments remains central to evaluating whether its operating improvements can support a more durable recovery.
Number of Hedge Fund Holders: 140
ASML Holding N.V. (NASDAQ:ASML) occupies an essential position in advanced semiconductor manufacturing through its lithography systems, which enable chipmakers to produce increasingly complex integrated circuits.
The company's significance extends beyond demand for new manufacturing equipment. Its installed base also generates revenue from maintenance, upgrades, and productivity improvements, providing another source of business activity as semiconductor manufacturers seek greater output from existing facilities. In its third-quarter 2026 results, ASML reported total net sales of €11.7 billion, while Installed Base Management sales increased sequentially to €3.289 billion. Gross margin reached 57.5%, supported partly by demand for productivity upgrades.
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The company also reported that customers were expressing interest in equipment deliveries extending into 2029 and 2030. Management cautioned that currently planned manufacturing capacity for 2027 and 2028 would not fully meet the demand customers were forecasting. This creates an important operational consideration for the company. Strong demand provides commercial visibility, but ASML's ability to expand production capacity and deliver equipment efficiently remains essential.
The company's position in semiconductor manufacturing supports its business, although its elevated valuation leaves continued execution and customer investment important considerations.
Number of Hedge Fund Holders: 151
Uber Technologies, Inc. (NYSE:UBER) has developed a substantial transportation and delivery platform, with its financial performance increasingly supported by operating scale and improvements in profitability.
The investment case is no longer limited to whether demand for ride-hailing and food delivery can grow. Uber has demonstrated an ability to generate cash from its established operations while investing in additional services and autonomous transportation.
In its third-quarter 2026 results, Gross Bookings increased 20% year over year to $59.8 billion. The company generated $2.5 billion in free cash flow, while GAAP operating income increased 30% to $1.4 billion. These figures are particularly relevant when evaluating Uber's elevated trailing earnings multiple, because they demonstrate improvements in the profitability of an already large commercial platform.
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Autonomous transportation represents another developing part of Uber's strategy. The company has been expanding partnerships and preparing to increase the number of fully driverless vehicles available through its platform.
However, the economics of autonomous mobility remain distinct from those of its established ride-hailing operations. The financial implications will depend on commercial deployment and the arrangements Uber establishes with its technology partners. Its cash generation provides a foundation for pursuing these opportunities without making the existing investment case entirely dependent on their success.
Number of Hedge Fund Holders: 170
Broadcom Inc. (NASDAQ:AVGO) has become an important supplier to AI infrastructure through its custom accelerators and semiconductor networking products. Unlike companies manufacturing complete computing systems, Broadcom supplies technologies used to process information and connect increasingly complex data-center infrastructure.
Its growing AI semiconductor business has become an important contributor to financial performance. In the company's third-quarter fiscal 2026 results, AI semiconductor revenue increased 221% year over year to $16.7 billion, supported by demand for custom accelerators and networking technologies.
However, Broadcom's financial position is not determined by AI hardware alone. Its infrastructure software business generated $8.752 billion in quarterly revenue, increasing 29% year over year. Broadcom also generated $13.665 billion in free cash flow during the quarter, equivalent to approximately 46% of revenue. This demonstrates substantial cash generation alongside its revenue growth.
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The longer-term investment question for the company concerns the sustainability of AI infrastructure spending and the contribution of custom semiconductor programs to Broadcom's earnings. Although its growth and cash generation provide a strong operating foundation, the stock's elevated valuation makes the durability of those trends especially important.
Click to continue reading and see the expanded list of the 10 High P/E Stocks Under the 200-Day SMA.
While we acknowledge the risk and potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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