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 climbing an uphill battle.

Two High-Flying Stocks to Sell:

Five Below (FIVE)

Forward P/E Ratio: 33.4x

Often facilitating a treasure hunt shopping experience, Five Below (NASDAQ: FIVE) is an American discount retailer that sells a variety of products from mobile phone cases to candy to sports equipment for largely $5 or less.

Why Does FIVE Worry Us?

1. Modest revenue base of $4.43 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
2. Commoditized inventory, bad unit economics, and high competition are reflected in its low gross margin of 35.4%
3. Underwhelming 10.4% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging

Five Below is trading at $222.45 per share, or 33.4x forward P/E. Dive into our free research report to see why there are better opportunities than FIVE.

Corcept (CORT)

Forward P/E Ratio: 94.4x

Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.

Why Does CORT Fall Short?

1. Incremental sales over the last five years were much less profitable as its earnings per share fell by 6.9% annually while its revenue grew
2. 27.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Corcept’s stock price of $33.16 implies a valuation ratio of 94.4x forward P/E. Check out our free in-depth research report to learn more about why CORT doesn’t pass our bar.

One High-Flying Stock to Buy:

Fair Isaac Corporation (FICO)

Forward P/E Ratio: 32x

Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.

Why Will FICO Beat the Market?

1. Share repurchases over the last two years enabled its annual earnings per share growth of 24.6% to outpace its revenue gains
2. Strong free cash flow margin of 34.8% enables it to reinvest or return capital consistently
3. Returns on capital are climbing as management makes more lucrative bets

At $1,291 per share, Fair Isaac Corporation trades at 32x forward P/E. Is now the time to initiate a position? Find out 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.