“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.
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. Keeping that in mind, here is one high-flying stock to hold for the long term and two with big downside risk.
Two High-Flying Stocks to Sell:
Borr Drilling (BORR)
Forward P/E Ratio: 182.6x
Operating one of the world's youngest jack-up fleets with an average age under eight years, Borr Drilling (NYSE: BORR) operates jack-up rigs that drill oil and gas wells in shallow waters up to 400 feet deep for exploration and production companies.
Why Does BORR Worry Us?
- Subscale operations are evident in its revenue base of $1.05 billion, meaning it has fewer distribution channels than its larger rivals
- Cash burn makes us question whether it can achieve sustainable long-term growth
Borr Drilling is trading at $4.45 per share, or 182.6x forward P/E. Check out our free in-depth research report to learn more about why BORR doesn’t pass our bar.
ProPetro (PUMP)
Forward P/E Ratio: 90.3x
Operating exclusively in the Permian Basin—one of America's most prolific oil-producing regions—ProPetro (NYSE: PUMP) provides hydraulic fracturing services that pump high-pressure fluid and sand into oil wells to release trapped hydrocarbons.
Why Is PUMP Risky?
- Smaller revenue base of $1.18 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Costly operations and weak unit economics result in an inferior gross margin of 27.4% that must be offset through higher production volumes
- Low free cash flow margin of 2% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $12.26 per share, ProPetro trades at 90.3x forward P/E. Read our free research report to see why you should think twice about including PUMP in your portfolio.
One High-Flying Stock to Watch:
Applied Materials (AMAT)
Forward P/E Ratio: 40.3x
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Why Are We Fans of AMAT?
- Demand will likely accelerate over the next 12 months as its forecasted revenue growth of 33.8% is above its two-year trend
- Healthy operating margin of 29.1% shows it’s a well-run company with efficient processes
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Applied Materials’s stock price of $545.01 implies a valuation ratio of 40.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 meet near-term momentum — both boxes checked at the same time.
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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.
