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 to hold for the long term and two where the price is not right.
Two High-Flying Stocks to Sell:
Entegris (ENTG)
Forward P/E Ratio: 32.8x
With fabs representing the company’s largest customer type, Entegris (NASDAQ: ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.
Why Do We Pass on ENTG?
- Sales tumbled by 6.1% annually over the last two years, showing market trends are working against its favor during this cycle
- Anticipated sales growth of 2.6% for the next year implies demand will be shaky
- Low free cash flow margin of 9.3% declined over the last five years as its investments ramped, giving it little breathing room
Entegris is trading at $92.78 per share, or 32.8x forward P/E. To fully understand why you should be careful with ENTG, check out our full research report (it’s free for active Edge members).
Kulicke and Soffa (KLIC)
Forward P/E Ratio: 32.7x
Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices
Why Do We Think Twice About KLIC?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Efficiency has decreased over the last five years as its operating margin fell by 27.7 percentage points
- Earnings per share fell by 26.9% annually over the last five years while its revenue was flat, showing each sale was less profitable
At $48.08 per share, Kulicke and Soffa trades at 32.7x forward P/E. Dive into our free research report to see why there are better opportunities than KLIC.
One High-Flying Stock to Buy:
Amphenol (APH)
Forward P/E Ratio: 36.5x
With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
Why Is APH a Good Business?
- Annual revenue growth of 29.7% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 40.2% annual growth in its earnings per share outpaced its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety
Amphenol’s stock price of $129.51 implies a valuation ratio of 36.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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