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.
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 are two high-flying stocks expanding their competitive advantages and one climbing an uphill battle.
One High-Flying Stock to Sell:
Lattice Semiconductor (LSCC)
Forward P/E Ratio: 59.2x
A global leader in its category, Lattice Semiconductor (NASDAQ: LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Why Are We Wary of LSCC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 15.7% annually over the last two years
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 17.4 percentage points
- Free cash flow margin shrank by 5.3 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
Lattice Semiconductor’s stock price of $98.72 implies a valuation ratio of 59.2x forward P/E. Dive into our free research report to see why there are better opportunities than LSCC.
Two High-Flying Stocks to Watch:
Axon (AXON)
Forward P/E Ratio: 65.4x
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Are We Backing AXON?
- ARR trends over the past two years show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 28.8% annually
At $460.75 per share, Axon trades at 65.4x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Mirion (MIR)
Forward P/E Ratio: 35.4x
With its technology protecting workers in over 130 countries and equipment used in 80% of cancer centers worldwide, Mirion Technologies (NYSE: MIR) provides radiation detection, measurement, and monitoring solutions for medical, nuclear energy, defense, and scientific research applications.
Why Should MIR Be on Your Watchlist?
- Impressive 11.8% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Operating margin improvement of 10.4 percentage points over the last five years demonstrates its ability to scale efficiently
- Free cash flow margin jumped by 11.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Mirion is trading at $19.50 per share, or 35.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI 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.
