"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 with strong fundamentals and one climbing an uphill battle.
One High-Flying Stock to Sell:
Texas Instruments (TXN)
Forward P/E Ratio: 36.7x
Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.
Why Is TXN Not Exciting?
- Annual sales growth of 3.6% over the last five years lagged behind its semiconductor peers as its large revenue base made it difficult to generate incremental demand
- Efficiency has decreased over the last five years as its operating margin fell by 15.3 percentage points
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 10.4 percentage points
Texas Instruments’s stock price of $303.54 implies a valuation ratio of 36.7x forward P/E. If you’re considering TXN for your portfolio, see our FREE research report to learn more.
Two High-Flying Stocks to Buy:
Axon (AXON)
Forward P/E Ratio: 47x
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Will AXON Outperform?
- Offerings are pivotal for their customers' operations as its ARR has averaged 37.6% growth over the past two years
- Operating margin expanded by 10.1 percentage points over the last five years as it scaled and became more efficient
- Earnings per share have massively outperformed its peers over the last two years, increasing by 26.6% annually
At $394.70 per share, Axon trades at 47x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Clover Health (CLOV)
Forward P/E Ratio: 38.9x
Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ: CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.
Why Should You Buy CLOV?
- Market share has increased this cycle as its 31.2% annual revenue growth over the last two years was exceptional
- Adjusted operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Free cash flow flipped to positive over the last five years, indicating the company has passed a significant test
Clover Health is trading at $3.57 per share, or 38.9x 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
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
