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.

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:

First Watch (FWRG)

Forward P/E Ratio: 54.7x

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ: FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

Why Are We Cautious About FWRG?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
2. Long-term business health is up for debate as its cash burn has increased over the last year
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

First Watch’s stock price of $18.77 implies a valuation ratio of 54.7x forward P/E. Check out our free in-depth research report to learn more about why FWRG doesn’t pass our bar.

Two High-Flying Stocks to Buy:

Monster (MNST)

Forward P/E Ratio: 34.5x

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 Should You Buy MNST?

1. Disciplined cost controls and effective management resulted in a strong two-year operating margin of 28.1%, and its rise over the last year was fueled by some leverage on its fixed costs
2. Robust free cash flow margin of 23.4% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $75.10 per share, Monster trades at 34.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Rollins (ROL)

Forward P/E Ratio: 49.5x

Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE: ROL) provides pest and wildlife control services to residential and commercial customers.

Why Are We Bullish on ROL?

1. Impressive 11.5% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Offerings are difficult to replicate at scale and result in a best-in-class gross margin of 52.3%
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business

Rollins is trading at $61.61 per share, or 49.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

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 6 Stocks for this week. 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 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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