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. Keeping that in mind, here are three high-flying stocks expanding their competitive advantages.

Amazon (AMZN)

Forward EV/EBITDA Ratio: 13.2x

Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.

Why Are We Fans of AMZN?

1. Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
2. The company's best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
3. Though dominant, Amazon's capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?

Amazon’s stock price of $264.00 implies a valuation ratio of 31.1x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Analog Devices (ADI)

Forward P/E Ratio: 32.4x

Founded by two MIT graduates, Ray Stata and Matthew Lorber in 1965, Analog Devices (NASDAQ: ADI) is one of the largest providers of high performance analog integrated circuits used mainly in industrial end markets, along with communications, autos, and consumer devices.

Why Could ADI Be a Winner?

1. Market share has increased this cycle as its 14.9% annual revenue growth over the last five years was exceptional
2. Offerings are difficult to replicate at scale and result in a stellar gross margin of 60.3%
3. Robust free cash flow margin of 36.7% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety

Analog Devices is trading at $401.75 per share, or 32.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Vulcan Materials (VMC)

Forward P/E Ratio: 31.3x

Founded in 1909, Vulcan Materials (NYSE: VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.

Why Do We Watch VMC?

1. Market share has increased this cycle as its 10.6% annual revenue growth over the last five years was exceptional
2. Operating margin expanded by 5.5 percentage points over the last five years as it scaled and became more efficient
3. Free cash flow margin increased by 5.4 percentage points over the last five years, giving the company more capital to invest or return to shareholders

At $301.69 per share, Vulcan Materials trades at 31.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.