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.
Determining whether a company’s quality justifies its price causes headaches for nearly all investors, which is why we started StockStory - to help you separate the real opportunities from the speculative ones. That said, here is one high-flying stock to hold for the long term and two with big downside risk.
Two High-Flying Stocks to Sell:
Kimball Electronics (KE)
Forward P/E Ratio: 31x
Founded in 1961, Kimball Electronics (NYSE: KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets.
Why Do We Avoid KE?
- Annual sales declines of 9.7% for the past two years show its products and services struggled to connect with the market during this cycle
- Gross margin of 8.1% reflects its high production costs
- Earnings per share have dipped by 29.1% annually over the past two years, which is concerning because stock prices follow EPS over the long term
Kimball Electronics’s stock price of $30.81 implies a valuation ratio of 31x forward P/E. If you’re considering KE for your portfolio, see our FREE research report to learn more.
Boeing (BA)
Forward P/E Ratio: 155.3x
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE: BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Why Do We Think BA Will Underperform?
- Flat unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
At $217.39 per share, Boeing trades at 155.3x forward P/E. Check out our free in-depth research report to learn more about why BA doesn’t pass our bar.
One High-Flying Stock to Buy:
Wingstop (WING)
Forward P/E Ratio: 58.6x
The passion project of two chicken wing aficionados in Texas, Wingstop (NASDAQ: WING) is a popular fast-food chain known for its flavorful and crispy chicken wings offered in a variety of sauces and seasonings.
Why Will WING Beat the Market?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Average same-store sales growth of 14.6% over the past two years indicates its restaurants are resonating with diners
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 25.5%
Wingstop is trading at $253.39 per share, or 58.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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 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-micro-cap company Tecnoglass (+1,754% 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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