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:
Viavi Solutions (VIAV)
Forward P/E Ratio: 45.7x
Once known as JDS Uniphase before its 2015 rebranding, Viavi Solutions (NASDAQ: VIAV) provides testing, monitoring and assurance solutions for telecommunications, cloud, enterprise, military, and other critical networks and infrastructure.
Why Is VIAV Not Exciting?
- Sales trends were unexciting over the last five years as its 2.3% annual growth was below the typical industrials company
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 3.1% annually
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Viavi Solutions’s stock price of $46.87 implies a valuation ratio of 45.7x forward P/E. If you’re considering VIAV for your portfolio, see our FREE research report to learn more.
Viasat (VSAT)
Forward P/E Ratio: 85.7x
Operating a fleet of 23 satellites that orbit the Earth and beam connectivity from space, Viasat (NASDAQ: VSAT) provides satellite-based communications networks and services for airlines, maritime vessels, governments, businesses, and residential customers worldwide.
Why Are We Hesitant About VSAT?
- Issuance of new shares over the last five years caused its earnings per share to fall by 2.6% annually while its revenue grew
- Negative free cash flow raises questions about the return timeline for its investments
- Negative returns on capital show management lost money while trying to expand the business
Viasat is trading at $62.90 per share, or 85.7x forward P/E. To fully understand why you should be careful with VSAT, check out our full research report (it’s free).
One High-Flying Stock to Buy:
AMD (AMD)
Forward P/E Ratio: 45.3x
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Are We Backing AMD?
- Market share has increased this cycle as its 28.8% annual revenue growth over the last five years was exceptional
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 35.2%
- Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 26.4% annually
At $328.68 per share, AMD trades at 45.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
