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 is one high-flying stock to hold for the long term and two with big downside risk.
Two high-flying stocks to sell:
Intel (INTC)
Forward P/E ratio: 43.5x
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.
Why Do We Pass on INTC?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5% annually over the last five years
- Issuance of new shares over the last five years caused its earnings per share to fall by 25.2% annually, even worse than its revenue declines
- Cash-burning history makes us doubt the long-term viability of its business model
Intel’s stock price of $57.76 implies a valuation ratio of 43.5x forward P/E. If you’re considering INTC for your portfolio, see our FREE research report to learn more.
Vital Farms (VITL)
Forward P/E ratio: -77.1x
With an emphasis on ethically produced products, Vital Farms (NASDAQ: VITL) specializes in pasture-raised eggs and butter.
Why Are We Cautious About VITL?
- Incremental sales over the last three years were much less profitable as its earnings per share fell by 38.7% annually while its revenue grew
- Free cash flow margin dropped by 13.1 percentage points over the last year, implying the company became more capital intensive as competition picked up
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Vital Farms is trading at $10.68 per share, or 18.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including VITL in your portfolio.
One high-flying stock to watch:
WD-40 (WDFC)
Forward P/E ratio: 33.8x
Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ: WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
Why Does WDFC Catch Our Eye?
- Unique products and pricing power lead to a top-tier gross margin of 55.2%
- WDFC is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
- Industry-leading 26.4% return on capital demonstrates management’s skill in finding high-return investments, and its returns are growing as it capitalizes on even better market opportunities
At $232.94 per share, WD-40 trades at 33.8x 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 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
