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.
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 with big downside risk.
Two High-Flying Stocks to Sell:
AeroVironment (AVAV)
Forward P/E Ratio: 69.2x
Focused on the future of autonomous military combat, AeroVironment (NASDAQ:AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.
Why Does AVAV Worry Us?
- Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 8.4 percentage points
- Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 9.9% annually
- 19 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
At $313.18 per share, AeroVironment trades at 69.2x forward P/E. Check out our free in-depth research report to learn more about why AVAV doesn’t pass our bar.
Moog (MOG.A)
Forward P/E Ratio: 31.6x
Responsible for the flight control actuation system integrated in the B-2 stealth bomber, Moog (NYSE:MOG.A) provides precision motion control solutions used in aerospace and defense applications
Why Does MOG.A Fall Short?
- Muted 4.9% annual revenue growth over the last five years shows its demand lagged behind its industrials peers
- 6.6 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
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Moog’s stock price of $241.00 implies a valuation ratio of 31.6x forward P/E. Dive into our free research report to see why there are better opportunities than MOG.A.
One High-Flying Stock to Watch:
TTM Technologies (TTMI)
Forward P/E Ratio: 35.5x
As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ:TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.
Why Does TTMI Catch Our Eye?
- Annual revenue growth of 10.5% over the past two years was outstanding, reflecting market share gains this cycle
- Projected revenue growth of 11.6% for the next 12 months suggests its momentum from the last two years will persist
- Earnings per share grew by 32.4% annually over the last two years and trumped its peers
TTM Technologies is trading at $97.53 per share, or 35.5x 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
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.