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 two high-flying stocks expanding their competitive advantages and one facing an uphill battle.
One High-Flying Stock to Sell:
Proto Labs (PRLB)
Forward P/E Ratio: 37.6x
Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE: PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries.
Why Do We Avoid PRLB?
- Annual revenue growth of 3.9% over the last two years was below our standards for the industrials sector
- Earnings per share have contracted by 2.9% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Proto Labs’s stock price of $73.87 implies a valuation ratio of 37.6x forward P/E. Check out our free in-depth research report to learn more about why PRLB doesn’t pass our bar.
Two High-Flying Stocks to Watch:
Palantir Technologies (PLTR)
Forward P/S Ratio: 39.7x
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ: PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Are We Backing PLTR?
- Billings have averaged 67.6% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- PLTR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $128.70 per share, Palantir Technologies trades at 39.7x forward price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Standex (SXI)
Forward P/E Ratio: 31.1x
Holding over 500 patents globally, Standex (NYSE: SXI) is a manufacturer and distributor of industrial components for various sectors.
Why Is SXI on Our Radar?
- Solid 10.2% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Highly efficient business model is illustrated by its impressive 15.2% operating margin, and its rise over the last five years was fueled by some leverage on its fixed costs
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 17.3% exceeded its revenue gains over the last five years
Standex is trading at $290.71 per share, or 31.1x forward P/E. Is now the time to initiate a position? 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 (+1,326% 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.
