Expensive stocks often command premium valuations because the market thinks their business models are exceptional. However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.
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 are two high-flying stocks with strong fundamentals and one facing an uphill battle.
One High-Flying Stock to Sell:
Novanta (NOVT)
Forward P/E Ratio: 43.1x
Originally a pioneer in the laser scanning industry during the late 1960s, Novanta (NASDAQ: NOVT) offers medicine and manufacturing technology to the medical, life sciences, and manufacturing industries.
Why Does NOVT Give Us Pause?
- 6.1% annual revenue growth over the last two years was slower than its industrials peers
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 6.5%
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 5.3% annually
Novanta’s stock price of $163.87 implies a valuation ratio of 43.1x forward P/E. If you’re considering NOVT for your portfolio, see our FREE research report to learn more.
Two High-Flying Stocks to Watch:
Rollins (ROL)
Forward P/E Ratio: 33x
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?
- Annual revenue growth of 11.7% over the last five years was superb and indicates its market share increased during this cycle
- Superior product capabilities and pricing power are reflected in its best-in-class gross margin of 52.2%
- Strong free cash flow margin of 16.1% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
Rollins is trading at $42.14 per share, or 33x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Corning (GLW)
Forward P/E Ratio: 76x
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 Should GLW Be on Your Watchlist?
- Market share has increased this cycle as its 12.6% annual revenue growth over the last two years was exceptional
- Exciting sales outlook for the upcoming 12 months calls for 16.8% growth, an acceleration from its two-year trend
- Earnings per share grew by 26.9% annually over the last two years and trumped its peers
At $219.96 per share, Corning trades at 76x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
