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 are two high-flying stocks to hold for the long term and one climbing an uphill battle.
One High-Flying Stock to Sell:
Walmart (WMT)
Forward P/E Ratio: 37.8x
Known for its large-format Supercenters, Walmart (NYSE: WMT) is a retail pioneer that serves a budget-conscious consumer who is looking for a wide range of products under one roof.
Why Is WMT Not Exciting?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 5% for the last six years
- Gross margin of 24.8% is below its competitors, leaving less money for marketing and promotions
- Incremental sales over the last six years were much less profitable as its earnings per share fell by 6.7% annually while its revenue grew
Walmart is trading at $103.67 per share, or 37.8x forward P/E. Read our free research report to see why you should think twice about including WMT in your portfolio.
Two High-Flying Stocks to Buy:
Axon (AXON)
Forward P/E Ratio: 114.8x
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Is AXON a Good Business?
- Products are seeing elevated demand as its unit sales averaged 28.8% growth over the past two years
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 46.5% outpaced its revenue gains
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Axon’s stock price of $761.47 implies a valuation ratio of 114.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Tradeweb Markets (TW)
Forward P/E Ratio: 32.3x
Founded in 1996 as one of the pioneers in electronic bond trading, Tradeweb Markets (NASDAQ: TW) builds and operates electronic marketplaces that connect financial institutions for trading across rates, credit, equities, and money markets.
Why Will TW Beat the Market?
- Annual revenue growth of 25.9% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 27.5% over the last two years outstripped its revenue performance
At $114.94 per share, Tradeweb Markets trades at 32.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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-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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