“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.
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 are two high-flying stocks with strong fundamentals and one facing an uphill battle.
One High-Flying Stock to Sell:
Concrete Pumping (BBCP)
Forward P/E Ratio: 31.4x
Going public via SPAC in 2018, Concrete Pumping (NASDAQ:BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.
Why Do We Think Twice About BBCP?
- Sales tumbled by 1.4% annually over the last two years, showing market trends are working against it during this cycle
- Earnings per share have contracted by 19.3% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Underwhelming 6.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $9.35 per share, Concrete Pumping trades at 31.4x forward P/E. Read our free research report to see why you should think twice about including BBCP in your portfolio.
Two High-Flying Stocks to Watch:
Vertex Pharmaceuticals (VRTX)
Forward P/E Ratio: 36.8x
Founded in 1989 with a mission to create medicines that treat the underlying causes of disease rather than just symptoms, Vertex Pharmaceuticals (NASDAQ:VRTX) develops and markets transformative medicines for serious diseases, with a focus on cystic fibrosis, sickle cell disease, and pain management.
Why Should VRTX Be on Your Watchlist?
- Solid 13.5% annual revenue growth over the last five years indicates its offerings solve complex business issues
- Adjusted operating profits increased over the last two years as the company gained some leverage on its fixed costs and became more efficient
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
Vertex Pharmaceuticals is trading at $514.35 per share, or 36.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Clover Health (CLOV)
Forward P/E Ratio: 30.5x
Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ:CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.
Why Is CLOV a Good Business?
- Annual revenue growth of 36.9% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share have massively outperformed its peers over the last five years, increasing by 15.2% annually
- Free cash flow profile has moved into positive territory over the last five years, indicating the company has achieved financial self-sustainability
Clover Health’s stock price of $4.81 implies a valuation ratio of 30.5x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 meet 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.