"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution. While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.

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 are two high-flying stocks to hold for the long term and one climbing an uphill battle.

One High-Flying Stock to Sell:

Latham (SWIM)

Forward P/E Ratio: 39.4x

Started as a family business, Latham (NASDAQ: SWIM) is a global designer and manufacturer of in-ground residential swimming pools and related products.

Why Should You Sell SWIM?

1. Sales trends were unexciting over the last five years as its 8.9% annual growth was below the typical consumer discretionary company
2. Operating margin of 4.8% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
3. Free cash flow margin is forecasted to shrink by 1.1 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors

Latham’s stock price of $6.78 implies a valuation ratio of 39.4x forward P/E. Check out our free in-depth research report to learn more about why SWIM doesn’t pass our bar.

Two High-Flying Stocks to Buy:

Palantir Technologies (PLTR)

Forward P/S Ratio: 80.6x

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 Do We Love PLTR?

1. Billings have averaged 52.2% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
3. Strong free cash flow margin of 51.2% enables it to reinvest or return capital consistently

At $186.80 per share, Palantir Technologies trades at 80.6x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Snowflake (SNOW)

Forward P/S Ratio: 13.8x

Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE: SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.

Why Are We Backing SNOW?

1. Average billings growth of 30.5% over the last year enhances its liquidity and shows there is steady demand for its products
2. Notable projected revenue growth of 24.7% for the next 12 months hints at market share gains
3. Free cash flow margin is forecasted to grow by 8.3 percentage points in the coming year, potentially giving the company more chips to play with

Snowflake is trading at $215.05 per share, or 13.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.