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 are two high-flying stocks with strong fundamentals and one climbing an uphill battle.
One High-Flying Stock to Sell:
PAR Technology (PAR)
Forward P/E Ratio: 87.2x
Originally founded in 1968 as a defense contractor for the U.S. government, PAR Technology (NYSE: PAR) provides cloud-based software, payment processing, and hardware solutions that help restaurants manage everything from point-of-sale to customer loyalty programs.
Why Does PAR Give Us Pause?
- Cash-burning history makes us doubt the long-term viability of its business model
- Negative returns on capital show management lost money while trying to expand the business
PAR Technology is trading at $34.00 per share, or 87.2x forward P/E. Check out our free in-depth research report to learn more about why PAR doesn’t pass our bar.
Two High-Flying Stocks to Watch:
CrowdStrike (CRWD)
Forward P/S Ratio: 23.6x
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Will CRWD Beat the Market?
- Billings have averaged 24% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Forecasted revenue growth of 22.1% for the next 12 months indicates its momentum over the last two years is sustainable
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
CrowdStrike’s stock price of $514.01 implies a valuation ratio of 23.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
MongoDB (MDB)
Forward P/S Ratio: 11.9x
Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.
Why Do We Like MDB?
- Customers view its software as mission-critical to their operations as its ARR has averaged 25.6% growth over the last year
- Estimated revenue growth of 19.8% for the next 12 months implies its momentum over the last two years will continue
- Free cash flow margin is forecasted to grow by 1.7 percentage points in the coming year, potentially giving the company more chips to play with
At $396.18 per share, MongoDB trades at 11.9x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 for free.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
