2 High-Flying Stocks to Own for Decades and 1 That Underwhelm

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 to hold for the long term and one with big downside risk.

One High-Flying Stock to Sell:

MSCI (MSCI)

Forward P/E Ratio: 30.7x

Originally known as Morgan Stanley Capital International before becoming independent in 2007, MSCI (NYSE:MSCI) provides critical decision support tools, indexes, and analytics that help global investors understand risk and return factors and build more effective investment portfolios.

Why Are We Wary of MSCI?

1. Push for growth has led to negative returns on capital, signaling value destruction

MSCI’s stock price of $576.95 implies a valuation ratio of 30.7x forward P/E. If you’re considering MSCI for your portfolio, see our FREE research report to learn more.

Two High-Flying Stocks to Buy:

Nova (NVMI)

Forward P/E Ratio: 35.3x

Headquartered in Israel, Nova (NASDAQ:NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Why Will NVMI Beat the Market?

1. Impressive 26.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Earnings per share grew by 33.1% annually over the last five years and trumped its peers
3. Robust free cash flow margin of 28% gives it many options for capital deployment

Nova is trading at $320 per share, or 35.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Pure Storage (PSTG)

Forward P/E Ratio: 41.9x

Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.

Why Are We Backing PSTG?

1. Ability to secure long-term commitments with customers is evident in its 22.4% average ARR growth over the past two years
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 34.1% over the last five years outstripped its revenue performance
3. Strong free cash flow margin of 17.4% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute

At $93 per share, Pure Storage trades at 41.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

Stocks We Like Even More

Fresh US-China trade tensions just tanked stocks—but strong bank earnings are fueling a sharp rebound. Don’t miss the bounce.

Don’t let fear keep you from great opportunities and take a look at Top 6 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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