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. Keeping that in mind, here are two high-flying stocks with strong fundamentals and one climbing an uphill battle.

One High-Flying Stock to Sell:

Intel (INTC)

Forward P/E Ratio: 116.8x

Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.

Why Do We Pass on INTC?

1. Sales tumbled by 7.6% annually over the last five years, showing market trends are working against its favor during this cycle
2. Inability to adjust its cost structure while its revenue declined over the last five years led to a 49.2 percentage point drop in the company’s operating margin
3. Free cash flow margin dropped by 39.4 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Intel’s stock price of $36.65 implies a valuation ratio of 116.8x forward P/E. Dive into our free research report to see why there are better opportunities than INTC.

Two High-Flying Stocks to Watch:

Comfort Systems (FIX)

Forward P/E Ratio: 41.3x

Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.

Why Are We Backing FIX?

1. Sales pipeline is in good shape as its backlog averaged 29.5% growth over the past two years
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Returns on capital are growing as management capitalizes on its market opportunities

Comfort Systems is trading at $826 per share, or 41.3x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

VSE Corporation (VSEC)

Forward P/E Ratio: 42x

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

Why Do We Watch VSEC?

1. Impressive 16.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
3. Incremental sales over the last five years have been more profitable as its earnings per share increased by 14.2% annually, topping its revenue gains

At $162.39 per share, VSE Corporation trades at 42x forward P/E. 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

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking 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 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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