2 High-Flying Stocks to Research Further and 1 We Turn Down

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 are two high-flying stocks expanding their competitive advantages and one climbing an uphill battle.

One High-Flying Stock to Sell:

Proto Labs (PRLB)

Forward P/E Ratio: 31.5x

Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE:PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries.

Why Do We Steer Clear of PRLB?

1. Annual revenue growth of 2.4% over the last two years was below our standards for the industrials sector
2. Efficiency has decreased over the last five years as its operating margin fell by 7.6 percentage points
3. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term

At $46.62 per share, Proto Labs trades at 31.5x forward P/E. To fully understand why you should be careful with PRLB, check out our full research report (it’s free).

Two High-Flying Stocks to Watch:

CrowdStrike (CRWD)

Forward P/S Ratio: 21x

Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ:CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.

Why Does CRWD Catch Our Eye?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 26.1% growth over the last year
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable three-year growth trajectory
3. Strong free cash flow margin of 24.7% enables it to reinvest or return capital consistently

CrowdStrike is trading at $424.40 per share, or 21x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Microsoft (MSFT)

Forward P/S Ratio: 12x

Short for microcomputer software, Microsoft (NASDAQ:MSFT) is the largest software vendor in the world with its Windows operating system, Office suite, and cloud computing services.

Why Are We Bullish on MSFT?

1. Microsoft is one of the great brands not just in tech but all of business. It produces mission-critical software and bundles it together, resulting in cream-of-the-crop gross margins.
2. The company's elite unit economics lead to robust profit margins that improve over time. This speaks to the scale advantages and operating efficiency across its diverse portfolio, which spans everything from Office and Azure to Minecraft.
3. Microsoft has a virtuous cycle of returns. Its dominant market position enables it to generate strong free cash flow, and it reinvests these funds into promising ventures that further strengthen its competitive moat.

Microsoft’s stock price of $522.60 implies a valuation ratio of 35x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

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 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-micro-cap company Kadant (+351% 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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