1 High-Flying Stock to Own for Decades and 2 We Turn Down

Expensive stocks often command premium valuations because the market thinks their business models are exceptional. However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.

Separating true intrinsic value from speculation isn’t easy, especially during bull markets. That’s where StockStory comes in - to help you find high-quality companies that will stand the test of time. Keeping that in mind, here is one high-flying stock expanding its competitive advantage and two climbing an uphill battle.

Two High-Flying Stocks to Sell:

Floor And Decor (FND)

Forward P/E Ratio: 29x

Operating large, warehouse-style stores, Floor & Decor (NYSE:FND) is a specialty retailer that specializes in hard flooring surfaces for the home such as tiles, hardwood, stone, and laminates.

Why Do We Think FND Will Underperform?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Earnings per share fell by 11.5% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam

Floor And Decor is trading at $59.82 per share, or 29x forward P/E. Read our free research report to see why you should think twice about including FND in your portfolio.

GE Vernova (GEV)

Forward P/E Ratio: 56x

Born from the energy business of industrial giant General Electric in a 2023 spin-off, GE Vernova (NYSE:GEV) designs, manufactures, and services power generation equipment and grid technologies to help customers build more reliable and sustainable electric systems.

Why Are We Cautious About GEV?

1. Annual sales growth of 3.6% over the last four years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
2. High input costs result in an inferior gross margin of 16.2% that must be offset through higher volumes
3. Persistent operating margin losses suggest the business manages its expenses poorly

GE Vernova’s stock price of $827.36 implies a valuation ratio of 56x forward P/E. To fully understand why you should be careful with GEV, check out our full research report (it’s free).

One High-Flying Stock to Buy:

Lam Research (LRCX)

Forward P/E Ratio: 32.6x

Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.

Why Is LRCX a Top Pick?

1. Annual revenue growth of 19.8% over the last two years was superb and indicates its market share increased during this cycle
2. Healthy operating margin of 31.9% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $209.50 per share, Lam Research trades at 32.6x 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.