"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 is one high-flying stock to hold for the long term and two with big downside risk.
Two High-Flying Stocks to Sell:
Lattice Semiconductor (LSCC)
Forward P/E Ratio: 50.6x
A global leader in its category, Lattice Semiconductor (NASDAQ:LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Why Does LSCC Worry Us?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 17.8% annually over the last two years
- Efficiency has decreased over the last five years as its operating margin fell by 15 percentage points
- Earnings per share lagged its peers over the last five years as they only grew by 5.2% annually
At $63.24 per share, Lattice Semiconductor trades at 50.6x forward P/E. Read our free research report to see why you should think twice about including LSCC in your portfolio.
BWX (BWXT)
Forward P/E Ratio: 47.3x
Contributing components and materials to the famous Manhattan Project in the 1940s, BWX (NYSE:BWXT) is a manufacturer and service provider of nuclear components and fuel for government and commercial industries.
Why Are We Hesitant About BWXT?
- Muted 6.9% annual revenue growth over the last five years shows its demand lagged behind its industrials peers
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 2.3 percentage points
- Earnings per share lagged its peers over the last five years as they only grew by 4.2% annually
BWX’s stock price of $174.75 implies a valuation ratio of 47.3x forward P/E. To fully understand why you should be careful with BWXT, check out our full research report (it’s free).
One High-Flying Stock to Buy:
Amphenol (APH)
Forward P/E Ratio: 39.3x
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 Are We Backing APH?
- Annual revenue growth of 22.4% over the last two years was superb and indicates its market share increased during this cycle
- Unparalleled revenue scale of $18.82 billion gives it an edge in distribution
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 29.1% outpaced its revenue gains
Amphenol is trading at $111.15 per share, or 39.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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-small-cap company Exlservice (+354% 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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