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 where the price is not right.
One High-Flying Stock to Sell:
Repligen (RGEN)
Forward P/E Ratio: 60.1x
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Do We Steer Clear of RGEN?
- Subscale operations are evident in its revenue base of $763.3 million, meaning it has fewer distribution channels than its larger rivals
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 18.1 percentage points
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Repligen is trading at $138.35 per share, or 60.1x forward P/E. To fully understand why you should be careful with RGEN, check out our full research report (it’s free).
Two High-Flying Stocks to Watch:
Bel Fuse (BELFA)
Forward P/E Ratio: 30.4x
Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ: BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Why Are We Backing BELFA?
- Operating margin expanded by 9.4 percentage points over the last five years as it scaled and became more efficient
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 20.5% over the last two years outstripped its revenue performance
- Free cash flow margin jumped by 13.3 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $265.53 per share, Bel Fuse trades at 30.4x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Plexus (PLXS)
Forward P/E Ratio: 32.2x
With over 20,000 team members across 26 global facilities, Plexus (NASDAQ: PLXS) designs, manufactures, and services complex electronic products for companies in aerospace/defense, healthcare, and industrial sectors.
Why Is PLXS on Our Radar?
- Projected revenue growth of 17.7% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- ROIC punches in at 15.4%, illustrating management’s expertise in identifying profitable investments
Plexus’s stock price of $286.72 implies a valuation ratio of 32.2x 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
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
