2 High-Flying Stocks to Keep an Eye On and 1 Facing Challenges

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. Keeping that in mind, here are two high-flying stocks to hold for the long term and one where the price is not right.

One High-Flying Stock to Sell:

Fastenal (FAST)

Forward P/E Ratio: 34.2x

Founded in 1967, Fastenal (NASDAQ:FAST) provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.

Why Are We Cautious About FAST?

1. Sales trends were unexciting over the last two years as its 4.8% annual growth was below the typical industrials company
2. Incremental sales over the last two years were less profitable as its 3.7% annual earnings per share growth lagged its revenue gains
3. Free cash flow margin shrank by 1.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Fastenal is trading at $40.47 per share, or 34.2x forward P/E. To fully understand why you should be careful with FAST, check out our full research report (it’s free for active Edge members).

Two High-Flying Stocks to Watch:

MACOM (MTSI)

Forward P/E Ratio: 41x

Founded in the 1950s as Microwave Associates, a communications supplier to the US Army Signal Corp, today MACOM Technology Solutions (NASDAQ: MTSI) is a provider of analog chips used in optical, wireless, and satellite networks.

Why Do We Like MTSI?

1. Annual revenue growth of 22.1% over the past two years was outstanding, reflecting market share gains this cycle
2. Offerings are difficult to replicate at scale and lead to a stellar gross margin of 54.4%
3. Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 29.1% annually

At $178.04 per share, MACOM trades at 41x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Comfort Systems (FIX)

Forward P/E Ratio: 32.5x

Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services.

Why Is FIX a Good Business?

1. Backlog has averaged 33.6% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Returns on capital are climbing as management makes more lucrative bets

Comfort Systems’s stock price of $937.01 implies a valuation ratio of 32.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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