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 to hold for the long term and one climbing an uphill battle.
One High-Flying Stock to Sell:
Entegris (ENTG)
Forward P/E Ratio: 33.2x
With fabs representing the company’s largest customer type, Entegris (NASDAQ: ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.
Why Are We Wary of ENTG?
- Annual sales declines of 2.1% for the past two years show its products and services struggled to connect with the market during this cycle
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 10.2%
- Poor free cash flow margin of 11.9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Entegris is trading at $125.12 per share, or 33.2x forward P/E. Check out our free in-depth research report to learn more about why ENTG doesn’t pass our bar.
Two High-Flying Stocks to Buy:
Datadog (DDOG)
Forward P/S Ratio: 16.7x
Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ: DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services.
Why Are We Backing DDOG?
- Customers view its software as mission-critical to their operations as its ARR has averaged 29.5% growth over the last year
- Notable projected revenue growth of 24% for the next 12 months hints at market share gains
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
At $215.50 per share, Datadog trades at 16.7x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
CECO Environmental (CECO)
Forward P/E Ratio: 46.9x
With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.
Why Will CECO Beat the Market?
- Annual revenue growth of 19.9% over the last two years was superb and indicates its market share increased during this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 23.9%
- Share repurchases over the last two years enabled its annual earnings per share growth of 23.6% to outpace its revenue gains
CECO Environmental’s stock price of $78.34 implies a valuation ratio of 46.9x 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 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
