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 to hold for the long term and one where the price is not right.
One high-flying stock to sell:
Bio-Techne (TECH)
Forward P/E ratio: 35.3x
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Why Do We Think TECH Will Underperform?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Revenue base of $1.22 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Bio-Techne is trading at $72.71 per share, or 35.3x forward P/E. Read our free research report to see why you should think twice about including TECH in your portfolio.
Two high-flying stocks to buy:
Axon (AXON)
Forward P/E ratio: 49.1x
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Do We Love AXON?
- Ability to secure long-term commitments with customers is evident in its 36.9% average ARR growth over the past two years
- Expected revenue growth of 32% for the next year suggests its market share will rise
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 23.2% annually
At $427.54 per share, Axon trades at 49.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
GE Aerospace (GE)
Forward P/E ratio: 35.2x
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE: GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Will GE Outperform?
- Annual revenue growth of 20.9% over the last two years was superb and indicates its market share increased during this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 35.4% exceeded its revenue gains over the last two years
- GE is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business
GE Aerospace’s stock price of $302.44 implies a valuation ratio of 35.2x 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
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.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
