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. Keeping that in mind, here are two high-flying stocks expanding their competitive advantages and one where the price is not right.

One High-Flying Stock to Sell:

National Vision (EYE)

Forward P/E Ratio: 30.2x

Operating under multiple brands, National Vision (NYSE: EYE) sells optical products such as eyeglasses and provides optical services such as eye exams.

Why Is EYE Not Exciting?

1. Store closures demonstrate a defensive approach to eliminating underperforming locations
2. Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its falling returns suggest its earlier profit pools are drying up

National Vision is trading at $22.72 per share, or 30.2x forward P/E. To fully understand why you should be careful with EYE, check out our full research report (it’s free).

Two High-Flying Stocks to Buy:

Comfort Systems (FIX)

Forward P/E Ratio: 34.8x

Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.

Why Will FIX Outperform?

1. Sales pipeline is in good shape as its backlog averaged 29.5% growth over the past two years
2. Share buybacks catapulted its annual earnings per share growth to 69.7%, which outperformed its revenue gains over the last two years
3. Improving returns on capital reflect management’s ability to monetize investments

Comfort Systems’s stock price of $692.47 implies a valuation ratio of 34.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Trane Technologies (TT)

Forward P/E Ratio: 31x

With low-pressure heating systems as its first product, Trane (NYSE: TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.

Why Are We Bullish on TT?

1. Impressive 11.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Share buybacks catapulted its annual earnings per share growth to 22.7%, which outperformed its revenue gains over the last two years
3. ROIC punches in at 23.8%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities

At $429.82 per share, Trane Technologies trades at 31x 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

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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