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.
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 climbing an uphill battle.
One High-Flying Stock to Sell:
Vishay Precision (VPG)
Forward P/E Ratio: 34.5x
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.
Why Should You Sell VPG?
- Sales tumbled by 10.2% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share fell by 17.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Vishay Precision’s stock price of $34.83 implies a valuation ratio of 34.5x forward P/E. Read our free research report to see why you should think twice about including VPG in your portfolio.
Two High-Flying Stocks to Watch:
Guidewire Software (GWRE)
Forward P/S Ratio: 15.4x
With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE: GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.
Why Are We Positive On GWRE?
- Billings growth has averaged 21.2% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Strong free cash flow margin of 23.3% enables it to reinvest or return capital consistently
At $250 per share, Guidewire Software trades at 15.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Alignment Healthcare (ALHC)
Forward P/E Ratio: 88.1x
Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ: ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.
Why Should You Buy ALHC?
- Average customer growth of 40.2% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Earnings per share grew by 45.5% annually over the last four years, massively outpacing its peers
- Free cash flow is now at break even, showing the company has crossed a key inflection point
Alignment Healthcare is trading at $17.26 per share, or 88.1x 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 .
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% 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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