5 Jul

These FTSE 100 stocks are at all-time highs. Would I still buy?

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address Stuart Blair has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images. Our 6 ‘Best Buys Now’ Shares Stuart Blair | Tuesday, 16th June, 2020 | More on: AZN OCDO center_img See all posts by Stuart Blair Throughout the FTSE 100, the coronavirus pandemic has wreaked havoc. This has seen share prices reaching new lows, dividends being cut and bankruptcy worries. But for these two FTSE 100 stocks, the coronavirus pandemic has had the opposite effect, with their share prices rising sharply. The online supermarket Ocado (LSE: OCDO) has seen its share price rise by 85% since the start of March, and the pharmaceutical giant AstraZeneca (LSE: AZN) has risen by over 20%. But with these firms reaching new highs, are they still worth buying?An overvalued FTSE 100 stockThere’s no doubt that Ocado has profited during the pandemic. With many people stuck at home, the online supermarket has become essential. This was reflected in its Q1 results and its current share price. But the FTSE 100 stock is now very expensive and I feel that it will decline as the crisis mentality fades.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…There are a few fundamental metrics that show Ocado is overvalued. Firstly, it has a price-to-book ratio of 13, which is significantly more than the industry average of around 4. Ocado has also been unprofitable over the past three years. This means that its current share price is currently based on speculation.Another indication of its overvaluation is its recent decision to complete an equity placing. This was done to add extra cash to the balance sheet. But it could also be seen as the FTSE 100 firm capitalising on its high share price, perhaps in expectations of a drop in the coming months. As a result, I would stay away from this stock for the time being.The pharmaceuticals giant Shares in AstraZeneca have also seen monumental growth recently, as well as significantly outperforming other FTSE 100 stocks for many years. Its leading position in the search for a Covid-19 vaccine has driven recent growth. But the pharmaceuticals company has more to it than this. This includes significant positions in cancer, respiratory and cardiovascular drugs.Yet while I don’t doubt the quality of AstraZeneca overall, the firm is currently trading at a P/E ratio of 90. This implies that earnings don’t currently justify the price of its shares. With a Covid-19 vaccine still a remote prospect at the moment, the FTSE 100 stock does seem very risky at its present price.There’s also the recent news that AstraZeneca might be considering merging with US peer Gilead Sciences. While there have only been tentative talks, and a merger is very unlikely, such rumours may still be a worry for shareholders as they cloud the clarity over the group’s future. All in all, I would therefore avoid both these FTSE 100 stocks. Although both are good businesses, their current share prices are too speculative and have little room to grow. I would much prefer investing in a firm that can grow significantly in the recovery.  Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. These FTSE 100 stocks are at all-time highs. Would I still buy? I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. 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