Expensive stocks often command premium valuations because the market thinks their business models are exceptional. However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.
Separating true intrinsic value from speculation isn’t easy, especially during bull markets. That’s where StockStory comes in - to help you find high-quality companies that will stand the test of time. Keeping that in mind, here are two high-flying stocks to hold for the long term and one where the price is not right.
One High-Flying Stock to Sell:
Stratasys (SSYS)
Forward P/E Ratio: 50.9x
Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ:SSYS) offers 3D printers and related materials, software, and services to many industries.
Why Does SSYS Give Us Pause?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Historical operating margin losses point to an inefficient cost structure
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
Stratasys’s stock price of $7.07 implies a valuation ratio of 50.9x forward P/E. Check out our free in-depth research report to learn more about why SSYS doesn’t pass our bar.
Two High-Flying Stocks to Buy:
KLA Corporation (KLAC)
Forward P/E Ratio: 31.7x
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
Why Are We Bullish on KLAC?
- Annual revenue growth of 14.4% over the last five years was superb and indicates its market share increased during this cycle
- Healthy operating margin of 40.6% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $166.66 per share, KLA Corporation trades at 31.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
RBC Bearings (RBC)
Forward P/E Ratio: 32.6x
With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE:RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.
Why Will RBC Beat the Market?
- Market share has increased this cycle as its 26.3% annual revenue growth over the last five years was exceptional
- Additional sales over the last two years increased its profitability as the 21.9% annual growth in its earnings per share outpaced its revenue
- RBC is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business
RBC Bearings is trading at $498.71 per share, or 32.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.