S&P 500 Stocks at New Highs: A Closer Look at Market Strength

Nearly two dozen S&P 500 stocks have reached new highs over the past year, with Berkshire Hathaway (BRK-B) leading the pack at a market value of $1.13 trillion.

These companies include industrial giants and payment processors that have seen significant gains in recent months, with RTX (RTX) gaining 14.5% in the last month alone.

The question now is whether these business fundamentals justify their new price levels, with the market rewarding companies like Visa (V), which trades at a multiple of 30.8 times trailing earnings, and RTX, which has seen a significant run but trades at a higher multiple of 39.0 times trailing earnings.

A disciplined approach to investing is needed here, as treating this list as a starting point rather than a verdict on the underlying business can help identify companies that are truly delivering strong performance.