Newsletter Subscription

A Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

1 High-Flying Stock That Stand Out and 2 to Be Wary Of

By: StockStory

May 02, 2025 at 00:38 AM EDT

MNST Cover Image

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.

Separating true intrinsic value from speculation isn’t easy, especially during bull markets. That’s where StockStory comes in - to help you find high-quality companies that will stand the test of time. That said, here is one high-flying stock to hold for the long term and two climbing an uphill battle.

Two High-Flying Stocks to Sell:

Planet Fitness (PLNT)

Forward P/E Ratio: 32.4x

Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE: PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.

Why Are We Cautious About PLNT?

Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its stores
Estimated sales growth of 10.5% for the next 12 months implies demand will slow from its two-year trend
Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

Planet Fitness is trading at $94.77 per share, or 32.4x forward P/E. Read our free research report to see why you should think twice about including PLNT in your portfolio.

Kratos (KTOS)

Forward P/E Ratio: 60.4x

Established with a commitment to supporting national security, Kratos (NASDAQ: KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications.

Why Do We Think Twice About KTOS?

Increased cash burn over the last five years raises questions about the return timeline for its investments
ROIC of 3.8% reflects management’s challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam
Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Kratos’s stock price of $34.95 implies a valuation ratio of 60.4x forward P/E. Check out our free in-depth research report to learn more about why KTOS doesn’t pass our bar.

One High-Flying Stock to Buy:

Monster (MNST)

Forward P/E Ratio: 32.6x

Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.

Why Are We Backing MNST?

Highly efficient business model is illustrated by its impressive 27% operating margin
Strong free cash flow margin of 21.6% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $59.53 per share, Monster trades at 32.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.

About Us

Laser Focus World Membership

Magazine Subscription

Newsletter Subscription

The Daily Beam

Product Watch

Bio & Life Sciences Product Watch

Laser Processing Product Watch

Get Published!

Photonics Hot List

Following the Photons: A Photonics Podcast

Social Media

Meet the Laser Focus World Team

Editorial

Sales

Editorial Advisory Board