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.
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 is one high-flying stock expanding its competitive advantage and two where the price is not right.
Two High-Flying Stocks to Sell:
Intel (INTC)
Forward P/E Ratio: 36.8x
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 Steer Clear of INTC?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 6.9% annually over the last five years
- Overall productivity fell over the last five years as its plummeting sales were accompanied by a decline in its operating margin
- Free cash flow margin shrank by 25 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $22.10 per share, Intel trades at 36.8x forward P/E. Read our free research report to see why you should think twice about including INTC in your portfolio.
Nike (NKE)
Forward P/E Ratio: 31.6x
Originally selling Japanese Onitsuka Tiger sneakers as Blue Ribbon Sports, Nike (NYSE: NKE) is a global titan in athletic footwear, apparel, equipment, and accessories.
Why Is NKE Risky?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Sales are projected to tank by 6.4% over the next 12 months as its demand continues evaporating
- Waning returns on capital imply its previous profit engines are losing steam
Nike is trading at $63.99 per share, or 31.6x forward P/E. To fully understand why you should be careful with NKE, check out our full research report (it’s free).
One High-Flying Stock to Watch:
Limbach (LMB)
Forward P/E Ratio: 32.8x
Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.
Why Should LMB Be on Your Watchlist?
- Efficiency rose over the last five years as its Operating margin increased by 5.3 percentage points
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 53.3% annually, topping its revenue gains
- Industry-leading 22.9% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities
Limbach’s stock price of $134.64 implies a valuation ratio of 32.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
