
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 to hold for the long term and two with big downside risk.
Two High-Flying Stocks to Sell:
LeMaitre (LMAT)
Forward P/E Ratio: 34.2x
Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.
Why Does LMAT Fall Short?
- Smaller revenue base of $240.9 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
LeMaitre’s stock price of $85.79 implies a valuation ratio of 34.2x forward P/E. Read our free research report to see why you should think twice about including LMAT in your portfolio.
Bio-Techne (TECH)
Forward P/E Ratio: 34x
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ:TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Why Are We Out on TECH?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Modest revenue base of $1.22 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 11.6 percentage points
Bio-Techne is trading at $69.58 per share, or 34x forward P/E. To fully understand why you should be careful with TECH, check out our full research report (it’s free).
One High-Flying Stock to Buy:
Chipotle (CMG)
Forward P/E Ratio: 34.3x
Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.
Why Should You Buy CMG?
- Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth
- Same-store sales growth averaged 4.2% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Massive revenue base of $11.79 billion makes it a household name that influences purchasing decisions
At $39.23 per share, Chipotle trades at 34.3x 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
Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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.