"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.
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 three high-flying stocks expanding their competitive advantages.
KLA Corporation (KLAC)
Forward P/E Ratio: 35.8x
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
Why Will KLAC Outperform?
- Annual revenue growth of 16% over the last five years was superb and indicates its market share increased during this cycle
- Offerings are mission-critical for businesses and result in a best-in-class gross margin of 60.7%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $1,435 per share, KLA Corporation trades at 35.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Dutch Bros (BROS)
Forward P/E Ratio: 59x
Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE:BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.
Why Is BROS a Top Pick?
- Fast expansion of new restaurants to reach markets with few or no locations is justified by its same-store sales growth
- Same-store sales growth averaged 6% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Expected revenue growth of 24.9% for the next year suggests its market share will rise
Dutch Bros’s stock price of $54.33 implies a valuation ratio of 59x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
WEBTOON (WBTN)
Forward P/E Ratio: 68.3x
Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ:WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.
Why Do We Watch WBTN?
- Solid 8.9% annual revenue growth over the last three years indicates its offering’s solve complex business issues
- Adjusted operating profits increased over the last four years as the company gained some leverage on its fixed costs and became more efficient
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 31.9% over the last two years outstripped its revenue performance
WEBTOON is trading at $10.52 per share, or 68.3x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.