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.

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. That said, here are two high-flying stocks to hold for the long term and one where the price is not right.

One High-Flying Stock to Sell:

Hyatt Hotels (H)

Forward P/E Ratio: 49.4x

Founded in 1957, Hyatt Hotels (NYSE: H) is a global hospitality company with a portfolio of 20 premier brands and over 950 properties across 65 countries.

Why Does H Worry Us?

1. Revenue per room has disappointed over the past two years due to weaker trends in its daily rates and occupancy levels
2. Subpar operating margin of 4.9% constrains its ability to invest in process improvements or effectively respond to new competitive threats
3. Negative returns on capital show management lost money while trying to expand the business

At $147.75 per share, Hyatt Hotels trades at 49.4x forward P/E. Dive into our free research report to see why there are better opportunities than H.

Two High-Flying Stocks to Watch:

Graham Corporation (GHM)

Forward P/E Ratio: 44x

Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE: GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.

Why Is GHM on Our Radar?

1. Average backlog growth of 21.7% over the past two years shows it has a steady sales pipeline that will drive future orders
2. Operating margin expanded by 4.4 percentage points over the last five years as it scaled and became more efficient
3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 145% over the last two years outstripped its revenue performance

Graham Corporation’s stock price of $60.40 implies a valuation ratio of 44x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Reddit (RDDT)

Forward EV/EBITDA Ratio: 44.1x

Founded in 2005 by two University of Virginia roommates, Reddit (NYSE: RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes.

Why Will RDDT Beat the Market?

1. Has the opportunity to boost monetization through new features and premium offerings as its domestic daily active visitors have grown by 33.7% annually over the last two years
2. Earnings per share have massively outperformed its peers over the last three years, increasing by 38.6% annually
3. Free cash flow margin jumped by 35.1 percentage points over the last few years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Reddit is trading at $198.80 per share, or 44.1x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

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 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.