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. Keeping that in mind, here are two high-flying stocks to hold for the long term and one with big downside risk.
One High-Flying Stock to Sell:
Casella Waste Systems (CWST)
Forward P/E Ratio: 82x
Starting with the founder picking up garbage with a pickup truck he purchased using savings from high school, Casella (NASDAQ: CWST) offers waste management services for businesses, residents, and the government.
Why Do We Think Twice About CWST?
- Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 4.6 percentage points
- ROIC of 5.6% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Casella Waste Systems’s stock price of $97.49 implies a valuation ratio of 82x forward P/E. If you’re considering CWST for your portfolio, see our FREE research report to learn more.
Two High-Flying Stocks to Watch:
Cintas (CTAS)
Forward P/E Ratio: 32.9x
Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.
Why Do We Love CTAS?
- Market share has increased this cycle as its 9.8% annual revenue growth over the last five years was exceptional
- Share repurchases over the last five years enabled its annual earnings per share growth of 16.4% to outpace its revenue gains
- Robust free cash flow margin of 16.4% gives it many options for capital deployment
At $181.15 per share, Cintas trades at 32.9x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
GE Vernova (GEV)
Forward P/E Ratio: 61.3x
Born from the energy business of industrial giant General Electric in a 2023 spin-off, GE Vernova (NYSE: GEV) designs, manufactures, and services power generation equipment and grid technologies to help customers build more reliable and sustainable electric systems.
Why Do We Watch GEV?
- Market share is on track to rise over the next 12 months as its 20.4% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings per share have massively outperformed its peers over the last one years, increasing by 223% annually
- Free cash flow margin expanded by 41.9 percentage points over the last four years, providing additional flexibility for investments and share buybacks/dividends
GE Vernova is trading at $1,117 per share, or 61.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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.
