“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.
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 facing an uphill battle.
One High-Flying Stock to Sell:
Calumet (CLMT)
Forward P/E Ratio: 149.2x
With roots dating back to 1919 and facilities strategically positioned from Louisiana to Montana, Calumet (NASDAQ: CLMT) refines crude oil into specialty products like lubricating oils, solvents, and waxes used in cosmetics, batteries, and industrial applications.
Why Is CLMT Risky?
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 7.4%
- Cash-burning history makes us doubt the long-term viability of its business model
- 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
Calumet is trading at $32.41 per share, or 149.2x forward P/E. If you’re considering CLMT for your portfolio, see our FREE research report to learn more.
Two High-Flying Stocks to Watch:
Intuitive Surgical (ISRG)
Forward P/E Ratio: 37.8x
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Is ISRG Interesting?
- Annual revenue growth of 20.2% over the last two years was superb and indicates its market share increased during this cycle
- Share repurchases over the last five years enabled its annual earnings per share growth of 21.3% to outpace its revenue gains
- Strong free cash flow margin of 19.6% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Intuitive Surgical’s stock price of $400.88 implies a valuation ratio of 37.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Iridium (IRDM)
Forward P/E Ratio: 36.1x
With a constellation of 66 low-earth orbit satellites providing coverage to every inch of the planet, Iridium Communications (NASDAQ: IRDM) operates a global satellite network that provides voice and data services to customers in remote areas where traditional telecommunications are unavailable.
Why Do We Watch IRDM?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 8.4% annual sales growth over the last five years
- Adjusted operating margin expanded by 17 percentage points over the last five years as it scaled and became more efficient
- Share repurchases have amplified shareholder returns as its annual earnings per share growth exceeded its revenue gains over the last two years
At $42.08 per share, Iridium trades at 36.1x forward P/E. Is now the right time to buy? See for yourself 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
