Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match. The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.

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 is one high-flying stock expanding its competitive advantage and two climbing an uphill battle.

Two High-Flying Stocks to Sell:

Mercury Systems (MRCY)

Forward P/E Ratio: 75.5x

Founded in 1981, Mercury Systems (NASDAQ: MRCY) specializes in providing processing subsystems and components for primarily defense applications.

Why Do We Think MRCY Will Underperform?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Issuance of new shares over the last five years caused its earnings per share to fall by 22.5% annually while its revenue grew
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Mercury Systems’s stock price of $75.13 implies a valuation ratio of 75.5x forward P/E. If you’re considering MRCY for your portfolio, see our FREE research report to learn more.

Artivion (AORT)

Forward P/E Ratio: 58x

Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE: AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.

Why Do We Think Twice About AORT?

1. Subscale operations are evident in its revenue base of $405 million, meaning it has fewer distribution channels than its larger rivals
2. Low free cash flow margin of -0.6% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. Low returns on capital reflect management’s struggle to allocate funds effectively

Artivion is trading at $40.20 per share, or 58x forward P/E. To fully understand why you should be careful with AORT, check out our full research report (it’s free for active Edge members).

One High-Flying Stock to Buy:

Snowflake (SNOW)

Forward P/S Ratio: 15.8x

Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE: SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.

Why Will SNOW Beat the Market?

1. Winning new contracts that can potentially increase in value as its billings growth has averaged 31.2% over the last year
2. Notable projected revenue growth of 24.5% for the next 12 months hints at market share gains
3. Free cash flow margin is on track to jump by 8.5 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $241.25 per share, Snowflake trades at 15.8x 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.

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 5 Growth Stocks for this month. 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 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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