3 High-Flying Stocks We Approach with Caution

"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution. While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.

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 are three high-flying stocks where the price is not right and some other investments you should look into instead.

Entegris (ENTG)

Forward P/E Ratio: 38.9x

With fabs representing the company’s largest customer type, Entegris (NASDAQ:ENTG) supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Why Do We Think Twice About ENTG?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 4.8% annually over the last two years
2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 7.1%
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its shrinking returns suggest its past profit sources are losing steam

Entegris is trading at $134.49 per share, or 38.9x forward P/E. Read our free research report to see why you should think twice about including ENTG in your portfolio.

Saia (SAIA)

Forward P/E Ratio: 37x

Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ:SAIA) is a provider of freight transportation solutions.

Why Are We Hesitant About SAIA?

1. Weak tons shipped over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Investment activity picked up over the last five years, pressuring its weak free cash flow margin of -0.4%
3. Eroding returns on capital suggest its historical profit centers are aging

At $407.00 per share, Saia trades at 37x forward P/E. To fully understand why you should be careful with SAIA, check out our full research report (it’s free).

Bel Fuse (BELFA)

Forward P/E Ratio: 29.2x

Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ:BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.

Why Are We Cautious About BELFA?

1. Sales trends were unexciting over the last two years as its 2.7% annual growth was below the typical industrials company
2. Earnings per share lagged its peers over the last one years as they only grew by 7.9% annually

Bel Fuse’s stock price of $215.91 implies a valuation ratio of 29.2x forward P/E. Dive into our free research report to see why there are better opportunities than BELFA.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.