The S&P 500 (^GSPC) is approaching an all-time high as December's Santa Claus rally saunters on, with several stocks hitting 52-week highs. Notable among these are Costco (COST), Chipotle (CMG), and Lululemon (LULU).

Yahoo Finance’s Brian Sozzi and Brad Smith use the new Yahoo Finance Compare tool to get insight into the price ratios of these companies. Lululemon, in particular, is highlighted for its position in the athleisure market and its performance in the men's footwear category.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

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BRIAN SOZZI: An all time high is firmly in sight for the S&P 500 as the Santa Claus rally rolls on to close out this year. Let's take a beat. Brad and I look at some stocks that are currently at 52 week highs as we speak. One of my all time favorites, Costco, formerly company of the year. We've got Chipotle on here and Lululemon.

And, Brad, we at Yahoo Finance just launched a new tool for the Yahoo Finance Committee. It's called Yahoo Finance Compare. And I'm on this compare page right now on our home page. And I'm looking at the price ratio section. And you really ultimately inspired this for me because you were talking about PE ratios earlier in the show. The PE ratio on Lululemon, 36 times 4. That is Costco 43 times, Chipotle 43 times.

And we're talking about markets at record highs. And this is reflected in some of these companies. So that is first and foremost. Secondarily, all three of those companies are some of the fundamentally strongest consumer oriented names in the entire market. And as we have learned, the consumer has continued to surprise to the upside. That means packed stores at Lululemon, pack stores at Costco, and packed restaurants at Chipotle, and all three of these companies have the financials for the past six months to back up where the stocks are trading now.

BRAD SMITH: I think one of the larger questions too because you're looking at three very different companies and where they can fit on the consumer spending spectrum. Lululemon still looked at it as very much a high value and one of the more costly parts of the athleisure, athletic apparel and also footwear. And one of the next catalysts perhaps that investors are going to need to look to is how well they do in men's footwear and an expansion in men's footwear coming off of what they've already done in launching women's. We were just talking about the slides. The slides was the first entry into men's footwear.

BRIAN SOZZI: You're a Nike guy. Don't sit here and tell me you think Lululemon gonna track Nike. You're going to--

BRAD SMITH: I try everybody. I'm not saying they're going to track them down.

BRIAN SOZZI: I just have to do the follow I just want to hear.

BRAD SMITH: OK.

BRIAN SOZZI: That's it. That's all I want to hear.

BRAD SMITH: I mean, look, it's going to be difficult to track down the most successful brand that the swoosh has been.

BRIAN SOZZI: There we go. We got Brad back. We got him back.

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OK, all right.

BRAD SMITH: --in the world here. So you think about that. But you think about what Lululemon is going to need to do. They're going to have to get it right on footwear. They're going to have to get it right on price point as well at a time where consumers are going to increasingly push back on some of those prices, regardless of how much they might be willing to spend into a luxury component like that. Also on the Chipotle side. You're going to be looking at, of course, the guacamole attachment rate to see if they're trading out of the guacamole.

And then lastly here, I'll hit Costco. That's where the consumer might end. The catalyst here for the consumer at Costco is buying in bulk, looking for deals, being more cost value conscious here. And that's something that could benefit them.

BRIAN SOZZI: All right, two quick shout outs. I'm realizing as you're talking about Lululemon. I spent about close to $800 there this past Christmas. A lot of gifts, lots of just stuff.

BRAD SMITH: Wow.

BRIAN SOZZI: But it was high quality stuff. And then lastly, Chipotle, I would watch out this. For mid 2024, that wage rate than California is slated to go to $20 an hour. Our very own Brooke DiPalma has been writing about this extensively. And it does present a key risk to Chipotle. If you're starting to pay your workers $20 an hour in California, which is their largest market, is your ball going to double in price?

BRAD SMITH: You've got people in the Slack channel right now asking you what you spent $800 on at Lululemon.

BRIAN SOZZI: It could add up.

BRAD SMITH: It actually does. You buy eight hoodies-- I'll defend you on this one. You get eight hoodies for eight special friends and family members, then hey, they're going to feel great. And hey, your wallet is going to take an $800 hit.

BRIAN SOZZI: Where do they get you is the t-shirts. So the t-shirts, you think I'm going to pick one up off the shelf. They look affordable. They're really like $68-$70. After tax, what $75? You pick up three of them, and suddenly you're looking at $800 tab.

BRAD SMITH: Adds up quick.