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 with strong fundamentals and two with big downside risk.

Two High-Flying Stocks to Sell:

Figs (FIGS)

Forward P/E Ratio: 121.1x

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE: FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Why Do We Think FIGS Will Underperform?

1. Number of active customers has disappointed over the past two years, indicating weak demand for its offerings
2. Projected 3.9 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Figs’s stock price of $6.83 implies a valuation ratio of 121.1x forward P/E. Dive into our free research report to see why there are better opportunities than FIGS.

Concrete Pumping (BBCP)

Forward P/E Ratio: 40.5x

Going public via SPAC in 2018, Concrete Pumping (NASDAQ: BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.

Why Do We Pass on BBCP?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Free cash flow margin dropped by 7.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $7.11 per share, Concrete Pumping trades at 40.5x forward P/E. If you’re considering BBCP for your portfolio, see our FREE research report to learn more.

One High-Flying Stock to Watch:

RBC Bearings (RBC)

Forward P/E Ratio: 32.2x

With a Guinness World Record for engineering the largest spherical plain bearing, RBC Bearings (NYSE: RBC) is a manufacturer of bearings and related components for the aerospace & defense, industrial, and transportation industries.

Why Is RBC Interesting?

1. Annual revenue growth of 18.9% over the last five years was superb and indicates its market share increased during this cycle
2. Exciting sales outlook for the upcoming 12 months calls for 14.5% growth, an acceleration from its two-year trend
3. Excellent operating margin of 20.2% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled

RBC Bearings is trading at $381.97 per share, or 32.2x forward P/E. Is now the time to initiate a position? Find out 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 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-micro-cap company Kadant (+351% 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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