2 High-Flying Stocks on Our Watchlist and 1 We Brush Off

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.

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. Keeping that in mind, here are two high-flying stocks expanding their competitive advantages and one where the price is not right.

One High-Flying Stock to Sell:

Rogers (ROG)

Forward P/E Ratio: 33.9x

With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE:ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications.

Why Do We Think ROG Will Underperform?

1. Sales tumbled by 5.5% annually over the last two years, showing market trends are working against its favor during this cycle
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 7.2 percentage points
3. Earnings per share have contracted by 13.9% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance

Rogers’s stock price of $108.36 implies a valuation ratio of 33.9x forward P/E. Dive into our free research report to see why there are better opportunities than ROG.

Two High-Flying Stocks to Watch:

WD-40 (WDFC)

Forward P/E Ratio: 39.6x

Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ:WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

Why Is WDFC on Our Radar?

1. Differentiated product offerings are difficult to replicate at scale and result in a top-tier gross margin of 54.5%
2. Robust free cash flow margin of 12.6% gives it many options for capital deployment
3. ROIC punches in at 26.2%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities

WD-40 is trading at $241.85 per share, or 39.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

CECO Environmental (CECO)

Forward P/E Ratio: 43.1x

With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.

Why Do We Love CECO?

1. Impressive 19.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 23.2%
3. Adjusted operating margin improvement of 10.6 percentage points over the last five years demonstrates its ability to scale efficiently

At $63.32 per share, CECO Environmental trades at 43.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.