1 High-Flying Stock with Solid Fundamentals and 2 We Ignore

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.

Separating true intrinsic value from speculation isn’t easy, especially during bull markets. That’s where StockStory comes in - to help you find high-quality companies that will stand the test of time. Keeping that in mind, here is one high-flying stock expanding its competitive advantage and two with big downside risk.

Two High-Flying Stocks to Sell:

Vicor (VICR)

Forward P/E Ratio: 39.2x

Founded by a researcher at the Massachusetts Institute of Technology, Vicor (NASDAQ:VICR) provides electrical power conversion and delivery products for a range of industries.

Why Does VICR Worry Us?

1. Sales pipeline suggests its future revenue growth likely won’t meet our standards as its backlog hasn’t budged over the past two years
2. Efficiency has decreased over the last five years as its operating margin fell by 10.9 percentage points
3. Eroding returns on capital suggest its historical profit centers are aging

Vicor’s stock price of $49.03 implies a valuation ratio of 39.2x forward P/E. To fully understand why you should be careful with VICR, check out our full research report (it’s free for active Edge members).

LeMaitre (LMAT)

Forward P/E Ratio: 38x

Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.

Why Are We Cautious About LMAT?

1. Subscale operations are evident in its revenue base of $234.6 million, meaning it has fewer distribution channels than its larger rivals
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 2.3 percentage points
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.3 percentage points

LeMaitre is trading at $87.85 per share, or 38x forward P/E. Read our free research report to see why you should think twice about including LMAT in your portfolio.

One High-Flying Stock to Watch:

Primoris (PRIM)

Forward P/E Ratio: 29.7x

Listed on the NASDAQ in 2008, Primoris (NYSE:PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.

Why Could PRIM Be a Winner?

1. Impressive 15.9% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Demand is greater than supply as the company’s 159% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
3. Earnings per share have massively outperformed its peers over the last two years, increasing by 28.6% annually

At $137.50 per share, Primoris trades at 29.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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 Tecnoglass (+1,754% 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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