1 High-Flying Stock with Promising Prospects and 2 That Underwhelm

SBUX Cover Image

"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.

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 is one high-flying stock expanding its competitive advantage and two with big downside risk.

Two High-Flying Stocks to Sell:

Starbucks (SBUX)

Forward P/E Ratio: 35.9x

Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.

Why Should You Sell SBUX?

  1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
  2. Estimated sales growth of 3.1% for the next 12 months implies demand will slow from its six-year trend
  3. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 7.1 percentage points

At $86.82 per share, Starbucks trades at 35.9x forward P/E. Check out our free in-depth research report to learn more about why SBUX doesn’t pass our bar.

Azenta (AZTA)

Forward P/E Ratio: 41.3x

Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ: AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.

Why Should You Dump AZTA?

  1. Annual sales declines of 7.2% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
  3. Free cash flow margin shrank by 22.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Azenta is trading at $30.66 per share, or 41.3x forward P/E. If you’re considering AZTA for your portfolio, see our FREE research report to learn more.

One High-Flying Stock to Watch:

Boston Scientific (BSX)

Forward P/E Ratio: 30.9x

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Why Should BSX Be on Your Watchlist?

  1. Core business can prosper without any help from acquisitions as its organic revenue growth averaged 16.2% over the past two years
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 19.9% over the last five years outstripped its revenue performance
  3. Free cash flow margin increased by 5.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Boston Scientific’s stock price of $102.59 implies a valuation ratio of 30.9x forward P/E. Is now a good 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-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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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