“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.
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 three high-flying stocks where the price is not right and some other investments you should look into instead.
Teradyne (TER)
Forward P/E Ratio: 39.3x
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ: TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Why Are We Cautious About TER?
- Decent 5.3% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
- Estimated sales growth of 24.4% for the next 12 months implies demand will slow from its two-year trend
- Free cash flow margin shrank by 6.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $376.20 per share, Teradyne trades at 39.3x forward P/E. Read our free research report to see why you should think twice about including TER in your portfolio.
Starbucks (SBUX)
Forward P/E Ratio: 35.3x
Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.
Why Does SBUX Give Us Pause?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
- Projected sales decline of 1.5% for the next 12 months points to a tough demand environment ahead
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 3 percentage points
Starbucks is trading at $106.96 per share, or 35.3x forward P/E. Dive into our free research report to see why there are better opportunities than SBUX.
Repligen (RGEN)
Forward P/E Ratio: 79.4x
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Are We Bearish on RGEN?
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 16.2 percentage points
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Repligen’s stock price of $181.10 implies a valuation ratio of 79.4x forward P/E. If you’re considering RGEN for your portfolio, see our FREE research report to learn more.
High-Quality Stocks for All Market Conditions
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.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
