"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. Keeping that in mind, here are two high-flying stocks expanding their competitive advantages and one climbing an uphill battle.
One High-Flying Stock to Sell:
Seadrill (SDRL)
Forward P/E Ratio: 199.5x
Operating in water depths reaching 12,000 feet below the surface, Seadrill (NYSE: SDRL) owns and operates drillships and semi-submersible rigs that drill oil and gas wells in deepwater offshore locations.
Why Is SDRL Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.5% annually over the last ten years
- Gross margin of 34% reflects its high production costs and unfavorable asset base
- Cash burn makes us question whether it can achieve sustainable long-term growth
At $46.14 per share, Seadrill trades at 199.5x forward P/E. Read our free research report to see why you should think twice about including SDRL in your portfolio.
Two High-Flying Stocks to Buy:
Palantir Technologies (PLTR)
Forward P/S Ratio: 46.8x
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 Will PLTR Beat the Market?
- Billings growth has averaged 59.5% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 50.7% gives it many options for capital deployment
Palantir Technologies is trading at $135.80 per share, or 46.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Fluence Energy (FLNC)
Forward P/E Ratio: 248.6x
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ: FLNC) helps store renewable energy sources with battery systems.
Why Are We Backing FLNC?
- Annual revenue growth of 33.8% over the last five years was superb and indicates its market share increased during this cycle
- Earnings per share grew by 36.4% annually over the last four years, massively outpacing its peers
- Cash burn has decreased over the last five years, showing the company is becoming a more self-sustaining business
Fluence Energy’s stock price of $15.05 implies a valuation ratio of 248.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.
