“You get what you pay for” often applies to expensive stocks with best-in-class business models and execution. While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.
Finding the right balance between price and quality can challenge even the most skilled investors. Luckily for you, we started StockStory to help you identify the real opportunities. That said, here are two high-flying stocks to hold for the long term and one with big downside risk.
Forward P/E Ratio: 33.5x
Operating large, warehouse-style stores, Floor & Decor (NYSE:FND) is a specialty retailer that specializes in hard flooring surfaces for the home such as tiles, hardwood, stone, and laminates.
Why Should You Dump FND?
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Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
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Earnings per share fell by 8.3% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
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Underwhelming 8.8% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
Floor And Decor is trading at $65.50 per share, or 33.5x forward P/E. Read our free research report to see why you should think twice about including FND in your portfolio, it’s free for active Edge members.
Forward P/E Ratio: 119.1x
Working in stealth mode for eight years, Bloom Energy (NYSE:BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Why Is BE a Top Pick?
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Annual revenue growth of 19.1% over the last five years was superb and indicates its market share increased during this cycle
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Free cash flow turned positive over the last five years, showing the company has crossed a key inflection point
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Rising returns on capital show the company is starting to reap the benefits of its past investments
Bloom Energy’s stock price of $117.02 implies a valuation ratio of 119.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Forward P/E Ratio: 53.3x
Revolutionizing diabetes care with its tubeless “Pod” technology, Insulet (NASDAQ:PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
Why Do We Love PODD?
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Business is well-positioned no matter the global macroeconomic backdrop as its constant currency revenue growth averaged 26.8% over the past two years
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Free cash flow margin jumped by 32.6 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
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Rising returns on capital show management is finding more attractive investment opportunities
At $316.51 per share, Insulet trades at 53.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members.
The market’s up big this year – but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking – and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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