"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. Keeping that in mind, here are two high-flying stocks expanding their competitive advantages and one with big downside risk.
One High-Flying Stock to Sell:
VeriSign (VRSN)
Forward P/S Ratio: 16.1x
As the silent guardian of the internet's roadmap, VeriSign (NASDAQ: VRSN) operates the authoritative registry for .com and .net domain names, enabling websites to be found reliably when users type web addresses.
Why Are We Cautious About VRSN?
- Annual revenue growth of 4.5% over the last two years was well below our standards for the software sector
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 4%
- Static operating margin over the last year shows it couldn’t become more efficient
At $282.65 per share, VeriSign trades at 16.1x forward price-to-sales. If you’re considering VRSN for your portfolio, see our FREE research report to learn more.
Two High-Flying Stocks to Watch:
MACOM (MTSI)
Forward P/E Ratio: 32.3x
Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.
Why Are We Fans of MTSI?
- Impressive 15.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 18.4%
- Earnings per share grew by 41.3% annually over the last five years, massively outpacing its peers
MACOM is trading at $125.47 per share, or 32.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Cadence Design Systems (CDNS)
Forward P/S Ratio: 17.6x
Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ: CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.
Why Do We Like CDNS?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 25.5% over the last year
- Software is difficult to replicate at scale and results in a best-in-class gross margin of 85.6%
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Cadence Design Systems’s stock price of $357.95 implies a valuation ratio of 17.6x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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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