A bleak outlook for earnings season this month threatens to rain on the S&P 500's march towards new highs this year. But as the trend unfolds, CNBC Pro has some of the stocks where investors can find shelter.
First-quarter results are projected to drop for the first time since 2009. Meanwhile more than one-fifth of the S&P 500 components issued negative pre-announcements last quarter, blaming the drop in commodity prices along with currency headwinds.
And a report from Goldman Sachs this week said the U.S. stock market is the most overvalued it has been in 40 years, apart from the tech bubble.
"The median stock trades above 18 times, ranking in the 99th historical percentile since 1976," highlighted David Kostin, Goldman's chief U.S. equity strategist, noting other metrics show a similar picture of stretched valuations.
So while low earnings' expectations and high valuations are not an ideal scenario for the market, there's a group of stocks that are bucking the trend.