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 facing an uphill battle.
Two High-Flying Stocks to Sell:
Monro (MNRO)
Forward P/E Ratio: 40.4x
Started as a single location in Rochester, New York, Monro (NASDAQ: MNRO) provides common auto services such as brake repairs, tire replacements, and oil changes.
Why Are We Out on MNRO?
- Store closures and poor same-store sales reveal weak demand and a push toward operational efficiency
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Sales were less profitable over the last three years as its earnings per share fell by 31.9% annually, worse than its revenue declines
Monro’s stock price of $14.69 implies a valuation ratio of 40.4x forward P/E. To fully understand why you should be careful with MNRO, check out our full research report (it’s free).
NN (NNBR)
Forward P/E Ratio: 29.6x
Formerly known as Nuturn, NN (NASDAQ: NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.
Why Do We Steer Clear of NNBR?
- Sales were flat over the last five years, indicating it’s failed to expand this cycle
- Cash-burning history makes us doubt the long-term viability of its business model
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $2.90 per share, NN trades at 29.6x forward P/E. Dive into our free research report to see why there are better opportunities than NNBR.
One High-Flying Stock to Watch:
Keysight (KEYS)
Forward P/E Ratio: 30.4x
Spun off from Hewlett-Packard in 2014, Keysight (NYSE: KEYS) offers electronic measurement products for use in various sectors.
Why Is KEYS Interesting?
- Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 63.3%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Keysight is trading at $334.89 per share, or 30.4x forward P/E. Is now the time to initiate a position? See for yourself 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
