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 where the price is not right.
One High-Flying Stock to Sell:
Golden Entertainment (GDEN)
Forward P/E Ratio: 57.7x
Founded in 2001, Golden Entertainment (NASDAQ: GDEN) is a gaming company operating casinos, taverns, and distributed gaming platforms.
Why Do We Steer Clear of GDEN?
- Sales tumbled by 2.5% annually over the last five years, showing consumer trends are working against its favor
- Poor free cash flow margin of 4.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Golden Entertainment’s stock price of $30.02 implies a valuation ratio of 57.7x forward P/E. To fully understand why you should be careful with GDEN, check out our full research report (it’s free for active Edge members).
Two High-Flying Stocks to Watch:
Cloudflare (NET)
Forward P/S Ratio: 27.2x
With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE: NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.
Why Is NET a Good Business?
- Billings growth has averaged 34.2% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Expected revenue growth of 27.5% for the next year suggests its market share will rise
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Cloudflare is trading at $198.50 per share, or 27.2x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Vicor (VICR)
Forward P/E Ratio: 43.6x
Founded by a researcher at the Massachusetts Institute of Technology, Vicor (NASDAQ: VICR) provides electrical power conversion and delivery products for a range of industries.
Why Do We Watch VICR?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 9.9% annual sales growth over the last five years
- Additional sales over the last two years increased its profitability as the 26.1% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 21.8 percentage points over the last five years, giving the company more chips to play with
At $89.35 per share, Vicor trades at 43.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
