"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.
Determining whether a company’s quality justifies its price causes headaches for nearly all investors, which is why we started StockStory - to help you separate the real opportunities from the speculative ones. That said, here is one high-flying stock expanding its competitive advantage and two climbing an uphill battle.
Two High-Flying Stocks to Sell:
Cracker Barrel (CBRL)
Forward P/E Ratio: 34.8x
Known for its country-themed food and merchandise, Cracker Barrel (NASDAQ: CBRL) is a beloved American restaurant and retail chain that celebrates the warmth and charm of Southern hospitality.
Why Do We Avoid CBRL?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new restaurants
- Estimated sales decline of 2.5% for the next 12 months implies a challenging demand environment
- Subpar operating margin of 1.4% constrains its ability to invest in process improvements or effectively respond to new competitive threats
Cracker Barrel’s stock price of $33.50 implies a valuation ratio of 34.8x forward P/E. To fully understand why you should be careful with CBRL, check out our full research report (it’s free for active Edge members).
Mayville Engineering (MEC)
Forward P/E Ratio: 98.6x
Originally founded solely on tool and die manufacturing, Mayville Engineering Company (NYSE: MEC) specializes in metal fabrication, tube bending, and welding to be used in various industries.
Why Should You Sell MEC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 2% annually over the last two years
- Gross margin of 12.8% reflects its high production costs
- Earnings per share have contracted by 43.3% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
At $17.20 per share, Mayville Engineering trades at 98.6x forward P/E. Dive into our free research report to see why there are better opportunities than MEC.
One High-Flying Stock to Buy:
Cintas (CTAS)
Forward P/E Ratio: 37.1x
Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.
Why Is CTAS a Good Business?
- Solid 8.5% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Share buybacks catapulted its annual earnings per share growth to 15.9%, which outperformed its revenue gains over the last five years
- CTAS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Cintas is trading at $181.69 per share, or 37.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. 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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