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. That said, here is one high-flying stock expanding its competitive advantage and two climbing an uphill battle.
Two High-Flying Stocks to Sell:
XPO (XPO)
Forward P/E Ratio: 32.4x
Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE: XPO) is a transportation company specializing in expedited shipping services.
Why Do We Pass on XPO?
- Sales tumbled by 1.4% annually over the last five years, showing market trends are working against its favor during this cycle
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 14.7%
- Free cash flow margin shrank by 4.2 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
At $135.52 per share, XPO trades at 32.4x forward P/E. If you’re considering XPO for your portfolio, see our FREE research report to learn more.
Myriad Genetics (MYGN)
Forward P/E Ratio: 216x
Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ: MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.
Why Should You Dump MYGN?
- Annual revenue growth of 6% over the last two years was below our standards for the healthcare sector
- Negative returns on capital show management lost money while trying to expand the business, and its falling returns suggest its earlier profit pools are drying up
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Myriad Genetics is trading at $6.36 per share, or 216x forward P/E. To fully understand why you should be careful with MYGN, check out our full research report (it’s free for active Edge members).
One High-Flying Stock to Watch:
Cadence Design Systems (CDNS)
Forward P/S Ratio: 15x
Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ: CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.
Why Does CDNS Stand Out?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 21.8% over the last year
- Prominent and differentiated software results in a best-in-class gross margin of 86.6%
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Cadence Design Systems’s stock price of $317.16 implies a valuation ratio of 15x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 Kadant (+351% 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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