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.
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. That said, here is one high-flying stock with strong fundamentals and two where the price is not right.
Two High-Flying Stocks to Sell:
Marcus & Millichap (MMI)
Forward P/E Ratio: 254.5x
Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Why Do We Pass on MMI?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.2% for the last two years
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $33.12 per share, Marcus & Millichap trades at 254.5x forward P/E. Dive into our free research report to see why there are better opportunities than MMI.
MSCI (MSCI)
Forward P/E Ratio: 30.9x
Originally known as Morgan Stanley Capital International before becoming independent in 2007, MSCI (NYSE:MSCI) provides critical decision support tools, indexes, and analytics that help global investors understand risk and return factors and build more effective investment portfolios.
Why Are We Hesitant About MSCI?
- Negative return on equity shows management lost money while trying to expand the business
MSCI’s stock price of $554.85 implies a valuation ratio of 30.9x forward P/E. If you’re considering MSCI for your portfolio, see our FREE research report to learn more.
One High-Flying Stock to Watch:
Curtiss-Wright (CW)
Forward P/E Ratio: 36.5x
Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Why Do We Watch CW?
- 10.2% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Excellent operating margin of 16.2% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
- Share buybacks catapulted its annual earnings per share growth to 19.1%, which outperformed its revenue gains over the last two years
Curtiss-Wright is trading at $481.69 per share, or 36.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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