It's been a rough start to 2024 for the stock market. Some of the biggest drivers of 2023's rally have taken hits in the first few days of the year, including some of the so-called "Magnificent Seven" stocks.

There's no telling what the market will do throughout 2024, but investors can put the odds in their favor by avoiding stocks with stretched valuations. I'll be staying away from DoorDash (NASDAQ: DASH) and (NASDAQ: MDB) this year for that reason.

Restaurant delivery stock DoorDash is down about 60% from its pandemic-era high, but it's been rallying over the past year. Shares of DoorDash doubled in 2023, delivering a market-beating performance that pushed up the company's market value to about $37 billion. Based on the average analyst estimate for 2023, DoorDash trades for more than 4 times annual sales.

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Source Fool.com