High-Quality Stocks Still Undervalued at Market Highs

The S&P 500 is sitting near all-time highs, and everywhere you look you see people saying,
"It’s too late to buy. I’ll wait for the pullback."

I get it — nobody wants to be the one buying at the top. But here’s the truth: some of the best investments of the next decade will be made at all-time highs.

The market doesn’t move in a straight line, and great businesses keep creating value whether the indexes are up or down. Even in a hot market, there are still opportunities hiding in plain sight — stocks with strong fundamentals, healthy growth, and valuations that don’t reflect their potential.

Today, I want to share seven names I think are still attractive right now, even with the indexes near record levels. These are companies with real earnings power, durable business models, and room to run.

$UNH – UnitedHealth Group

UnitedHealth is one of the most reliable compounders on the planet. Healthcare demand is steady regardless of the economy — people don’t stop needing care when interest rates go up.

What sets UNH apart is its scale and vertical integration. Between UnitedHealthcare (insurance) and Optum (data, pharmacy, care delivery), this is a business with multiple growth engines. Even better, the stock is finally back to a reasonable valuation after being punished earlier this year.

This is the kind of stock you tuck away and let compound for decades. If you want exposure to healthcare with a rock-solid balance sheet and steady cash flow, UNH is hard to beat.

$PYPL – PayPal

PayPal is one of the most frustrating stocks to own — but also one of the most misunderstood. The market has been punishing it for slowing growth and execution missteps, but underneath the noise, this is still a financial powerhouse.

PayPal is producing billions in free cash flow every year and using that cash to aggressively buy back shares — nearly 10% of its float annually. That alone sets up a nice per-share earnings tailwind.

With 400M+ active accounts and a low bar for expectations, even moderate improvement in margins or user engagement could drive a big re-rating. This is one of those “when it turns, it could turn fast” situations.

$ADBE – Adobe

Adobe is a quiet giant. It has been building creative software dominance for decades, and its subscription model provides predictable, recurring revenue.

The exciting part is that AI isn’t disrupting Adobe — it’s enhancing it. Generative AI tools are being integrated into Photoshop, Premiere, and the entire Creative Cloud suite, making its products even more valuable to creators.

At today’s valuation, ADBE looks like a steady compounder that will keep delivering double-digit EPS growth while rewarding patient investors.

$CRM – Salesforce

Salesforce has been through a major transition, and it’s finally showing up in the numbers. Margins are improving, free cash flow is strong, and the company has been more disciplined about acquisitions and spending.

Its software is still mission-critical for enterprises, and as companies look to do more with less, Salesforce’s integrated platform will stay sticky.

This is a quality growth company trading at a more reasonable multiple than it has in years — exactly what I look for when the market is hot.

$NVO – Novo Nordisk

Novo Nordisk is the face of the GLP-1 revolution. Demand for weight-loss and diabetes drugs like Wegovy and Ozempic has been relentless, and the company is investing heavily to expand capacity and meet that demand.

Even with all that growth, Novo trades at a forward P/E around 14, which is surprisingly cheap for a business with this kind of moat and pricing power. If you believe GLP-1s are here to stay — and all signs point that way — this is one of the most compelling healthcare names in the world.

$OSCR – Oscar Health

Oscar Health is a tech-first insurance company that has been quietly executing its turnaround. Membership growth is strong, medical loss ratios are improving, and profitability is finally in sight.

This is a classic underdog story. The market has largely ignored OSCR, but every quarter they prove they can scale efficiently and deliver better care experiences. If management keeps executing, this could be one of the best-performing small caps in healthcare over the next few years.

$SOFI – SoFi Technologies

SoFi has become one of my highest-conviction positions for a reason. It’s not just a digital bank — it’s building a full financial ecosystem designed to capture customers early and keep them for life.

Its lending platform drives profits, which fund growth into checking, investing, and other products. The cross-sell potential is massive, and customer acquisition costs stay low thanks to the flywheel effect.

If they keep scaling members and deposits at this pace, I believe SoFi could become a top-10 U.S. financial institution by the end of the decade.

Final Thoughts

It’s easy to get spooked when the market is near all-time highs, but sitting in cash waiting for the perfect dip is often the most expensive decision you can make.

The companies above have strong balance sheets, consistent growth, and are trading at valuations that still leave plenty of upside for long-term investors. My approach is simple: keep dollar-cost averaging into high-conviction names, ignore the noise, and let compounding do its job.

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Full Disclosure

This newsletter is for informational and educational purposes only and does not constitute financial, legal, or tax advice. The opinions expressed are solely my own and based on publicly available information I believe to be accurate at the time of writing, but no guarantee is made as to their completeness or reliability.

Investing involves risk, including the potential loss of principal. Past performance is not indicative of future results, and no investment strategy can guarantee success. Stock prices can be volatile, and even high-quality companies can underperform for extended periods.

You should carefully consider your financial situation, risk tolerance, and investment objectives before acting on any information contained in this newsletter. Consider consulting with a licensed financial advisor, tax professional, or other qualified expert before making investment decisions.

I may hold positions, directly or indirectly, in some or all of the securities mentioned above, and those positions may change at any time without notice. This newsletter should not be interpreted as a solicitation to buy or sell any security.