1 High-Flying Stock with Competitive Advantages and 2 We Question

September 02, 2025 at 00:34 AM EDT

IPGP Cover Image

"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution. While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.

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 is one high-flying stock with strong fundamentals and two where the price is not right.

Two High-Flying Stocks to Sell:

IPG Photonics (IPGP)

Forward P/E Ratio: 67.4x

Both a designer and manufacturer of its products, IPG Photonics (NASDAQ: IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.

Why Do We Avoid IPGP?

Customers postponed purchases of its products and services this cycle as its revenue declined by 4.3% annually over the last five years
Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
Free cash flow margin shrank by 11.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

IPG Photonics is trading at $81.82 per share, or 67.4x forward P/E. Check out our free in-depth research report to learn more about why IPGP doesn’t pass our bar.

JELD-WEN (JELD)

Forward P/E Ratio: 101.1x

Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE: JELD) manufactures doors, windows, and other related building products.

Why Should You Dump JELD?

Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Short cash runway increases the probability of a capital raise that dilutes existing shareholders

JELD-WEN’s stock price of $6.42 implies a valuation ratio of 101.1x forward P/E. To fully understand why you should be careful with JELD, check out our full research report (it’s free).

One High-Flying Stock to Watch:

Live Nation (LYV)

Forward P/E Ratio: 50.6x

Owner of Ticketmaster and operator of music festival EDC, Live Nation (NYSE: LYV) is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.

Why Is LYV on Our Radar?

Market share has increased over the last five years as its 24% annual revenue growth was exceptional
Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 26% outpaced its revenue gains
Rising returns on capital show management is finding more attractive investment opportunities

At $166.52 per share, Live Nation trades at 50.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% 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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