Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match. The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.
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 three high-flying stocks with strong fundamentals.
Vertiv (VRT)
Forward P/E Ratio: 31.2x
Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.
Why Should You Buy VRT?
- Average organic revenue growth of 19.6% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Free cash flow margin increased by 5.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are growing as management capitalizes on its market opportunities
Vertiv is trading at $125.07 per share, or 31.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Cintas (CTAS)
Forward P/E Ratio: 43.5x
Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.
Why Will CTAS Beat the Market?
- 8.3% annual revenue growth over the last two years surpassed the sector average as its services resonated with customers
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $218.77 per share, Cintas trades at 43.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
S&P Global (SPGI)
Forward P/E Ratio: 31.7x
Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE: SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.
Why Are We Backing SPGI?
- Solid 13% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Share repurchases over the last two years enabled its annual earnings per share growth of 18.6% to outpace its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
S&P Global’s stock price of $550.99 implies a valuation ratio of 31.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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
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