Are stocks overpriced? One analyst says the market may be at its upper limit.
Equities "might be priced to perfection," Christine Short, senior vice president at financial estimates platform Estimize, said Thursday on CNBC's "Power Lunch." The earnings forecasts for the second and third quarters of 2017 "are starting to come down a little bit, as far as analysts and corporate guidance goes," she said.
Short said that while investors' bottom line expectations are currently high, the numbers have fallen since the first quarter — and would be even lower, but for a big boost from the energy industry.
"If you pull out energy," Short said, citing the industry's massive growth rate from the prior year, "earnings expectations are actually cut in half. So we're really only looking at 4 percent bottom line growth."
"What you have to start to ask yourself is, 'Is that enough to justify the current rally?'" she said.