2 High-Flying Stocks to Consider Right Now and 1 That Underwhelm

"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.

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. That said, here are two high-flying stocks with strong fundamentals and one with big downside risk.

One High-Flying Stock to Sell:

NeoGenomics (NEO)

Forward P/E Ratio: 48.3x

Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics (NASDAQ:NEO) provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.

Why Do We Steer Clear of NEO?

1. Earnings per share fell by 3% annually over the last five years while its revenue grew, partly because it diluted shareholders
2. Negative returns on capital show management lost money while trying to expand the business
3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital at unfavorable terms if market conditions deteriorate

NeoGenomics’s stock price of $7.96 implies a valuation ratio of 48.3x forward P/E. Read our free research report to see why you should think twice about including NEO in your portfolio.

Two High-Flying Stocks to Watch:

BWX (BWXT)

Forward P/E Ratio: 45.6x

Contributing components and materials to the famous Manhattan Project in the 1940s, BWX (NYSE:BWXT) is a manufacturer and service provider of nuclear components and fuel for government and commercial industries.

Why Should You Buy BWXT?

1. Impressive 13.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 17.3%
3. Free cash flow margin jumped by 5.7 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $201.69 per share, BWX trades at 45.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Leonardo DRS (DRS)

Forward P/E Ratio: 36.4x

Developing submarine detection systems for the U.S. Navy, Leonardo DRS (NASDAQ:DRS) is a provider of defense systems, electronics, and military support services.

Why Should DRS Be on Your Watchlist?

1. Annual revenue growth of 13.6% over the last two years was superb and indicates its market share increased during this cycle
2. Earnings per share grew by 25% annually over the last two years and trumped its peers
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Leonardo DRS is trading at $43.76 per share, or 36.4x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

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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.