"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.
Determining whether a company’s quality justifies its price causes headaches for nearly all investors, which is why we started StockStory - to help you separate the real opportunities from the speculative ones. Keeping that in mind, here is one high-flying stock to hold for the long term and two climbing an uphill battle.
Two High-Flying Stocks to Sell:
Exact Sciences (EXAS)
Forward P/E Ratio: 120.5x
With a mission to detect cancer earlier when it's more treatable, Exact Sciences (NASDAQ: EXAS) develops and markets cancer screening and diagnostic tests, including its flagship Cologuard stool-based colorectal cancer screening test.
Why Does EXAS Give Us Pause?
- Cash-burning history makes us doubt the long-term viability of its business model
- Negative returns on capital show that some of its growth strategies have backfired
Exact Sciences’s stock price of $101.71 implies a valuation ratio of 120.5x forward P/E. Dive into our free research report to see why there are better opportunities than EXAS.
Mettler-Toledo (MTD)
Forward P/E Ratio: 31.3x
With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo (NYSE: MTD) manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail.
Why Are We Cautious About MTD?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Costs have risen faster than its revenue over the last two years, causing its adjusted operating margin to decline by 1.4 percentage points
Mettler-Toledo is trading at $1,380 per share, or 31.3x forward P/E. Check out our free in-depth research report to learn more about why MTD doesn’t pass our bar.
One High-Flying Stock to Watch:
Hims & Hers Health (HIMS)
Forward P/E Ratio: 31.7x
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Is HIMS on Our Radar?
- Business is winning new contracts that can potentially increase in value as its customer base averaged 38.9% growth over the past two years
- Free cash flow margin increased by 21.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Rising returns on capital show the company is starting to reap the benefits of its past investments
At $33.47 per share, Hims & Hers Health trades at 31.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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 Exlservice (+354% 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.
