"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.
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 is one high-flying stock with strong fundamentals and two where the price is not right.
Two High-Flying Stocks to Sell:
Corning (GLW)
Forward P/E Ratio: 31x
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Are We Hesitant About GLW?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4% over the last two years was below our standards for the industrials sector
- 4.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up
Corning’s stock price of $83.18 implies a valuation ratio of 31x forward P/E. If you’re considering GLW for your portfolio, see our FREE research report to learn more.
Ibotta (IBTA)
Forward P/E Ratio: 37.8x
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE: IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Why Does IBTA Worry Us?
- Revenue base of $367.6 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Forecasted revenue decline of 10.1% for the upcoming 12 months implies demand will fall off a cliff
Ibotta is trading at $30 per share, or 37.8x forward P/E. Check out our free in-depth research report to learn more about why IBTA doesn’t pass our bar.
One High-Flying Stock to Buy:
Duolingo (DUOL)
Forward EV/EBITDA Ratio: 46.1x
Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ: DUOL) is a mobile app helping people learn new languages.
Why Are We Bullish on DUOL?
- Monthly Active Users have grown by 36.5% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 311% over the last three years outstripped its revenue performance
- Robust free cash flow margin of 35% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
At $318.03 per share, Duolingo trades at 46.1x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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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