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 to hold for the long term and one climbing an uphill battle.
One High-Flying Stock to Sell:
Martin Marietta Materials (MLM)
Forward P/E Ratio: 30.5x
Operating one of North America's largest networks of quarries, including 14 underground mines, Martin Marietta Materials (NYSE: MLM) is a natural resource-based building materials company that supplies aggregates, cement, and other construction materials for infrastructure and building projects.
Why Does MLM Fall Short?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 5.5%
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 3.9% annually
Martin Marietta Materials is trading at $646 per share, or 30.5x forward P/E. Check out our free in-depth research report to learn more about why MLM doesn’t pass our bar.
Two High-Flying Stocks to Watch:
Amazon (AMZN)
Forward EV/EBITDA Ratio: 13.7x
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.
Why Does AMZN Stand Out?
- Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
- The company's best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
- Though dominant, Amazon's capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?
Amazon’s stock price of $241 implies a valuation ratio of 32.5x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Paymentus (PAY)
Forward P/E Ratio: 40.4x
Founded in 2004 to simplify the complex world of bill payments, Paymentus (NYSE: PAY) provides a cloud-based platform that helps utilities, municipalities, and service providers automate billing and payment processes.
Why Is PAY a Top Pick?
- Annual revenue growth of 39% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 86.3% outpaced its revenue gains
At $27.94 per share, Paymentus trades at 40.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
