2 High-Flying Stocks to Target This Week and 1 Facing Challenges

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.

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 to hold for the long term and one where the price is not right.

One High-Flying Stock to Sell:

Freshpet (FRPT)

Forward P/E Ratio: 38.3x

Standing out from typical processed pet foods, Freshpet (NASDAQ:FRPT) is a pet food company whose product portfolio includes natural meals and treats for dogs and cats.

Why Does FRPT Worry Us?

1. Smaller revenue base of $1.14 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $55.63 per share, Freshpet trades at 38.3x forward P/E. To fully understand why you should be careful with FRPT, check out our full research report (it’s free).

Two High-Flying Stocks to Buy:

Woodward (WWD)

Forward P/E Ratio: 42.2x

Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ:WWD) designs, services, and manufactures energy control products and optimization solutions.

Why Is WWD a Good Business?

1. Impressive 13% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Operating margin improvement of 5.6 percentage points over the last five years demonstrates its ability to scale efficiently
3. Share repurchases over the last two years enabled its annual earnings per share growth of 19.9% to outpace its revenue gains

Woodward’s stock price of $436.00 implies a valuation ratio of 42.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Humana (HUM)

Forward P/E Ratio: 35.1x

With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.

Why Are We Backing HUM?

1. Annual revenue growth of 13.6% over the last two years beat the sector average and underscores the unique value of its offerings
2. Dominant market position is represented by its $137.3 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
3. Exciting sales outlook for the upcoming 12 months calls for 19.4% growth, an acceleration from its two-year trend

Humana is trading at $364.93 per share, or 35.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.