"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 is one high-flying stock with strong fundamentals and two where the price is not right.

Two High-Flying Stocks to Sell:

Walmart (WMT)

Forward P/E Ratio: 41.2x

Known for its large-format Supercenters, Walmart (NYSE: WMT) is a retail pioneer that serves a budget-conscious consumer who is looking for a wide range of products under one roof.

Why Are We Wary of WMT?

1. Sizable revenue base leads to growth challenges as its 5.4% annual revenue increases over the last three years fell short of other consumer retail companies
2. Gross margin of 24.8% is below its competitors, leaving less money for marketing and promotions
3. Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability

Walmart’s stock price of $117.72 implies a valuation ratio of 41.2x forward P/E. Check out our free in-depth research report to learn more about why WMT doesn’t pass our bar.

First Watch (FWRG)

Forward P/E Ratio: 54.9x

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ: FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

Why Is FWRG Not Exciting?

1. Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
2. Cash burn has widened over the last year, making us question whether it can reliably generate shareholder value
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

First Watch is trading at $16.16 per share, or 54.9x forward P/E. If you’re considering FWRG for your portfolio, see our FREE research report to learn more.

One High-Flying Stock to Watch:

Viasat (VSAT)

Forward P/E Ratio: 85.4x

Operating a fleet of 23 satellites that orbit the Earth and beam connectivity from space, Viasat (NASDAQ: VSAT) provides satellite-based communications networks and services for airlines, maritime vessels, governments, businesses, and residential customers worldwide.

Why Should VSAT Be on Your Watchlist?

1. Annual revenue growth of 17.4% over the last two years was superb and indicates its market share increased during this cycle
2. Economies of scale give it more fixed cost leverage than its smaller competitors
3. Stagnant returns on capital show management has failed to improve the company’s business quality

At $42.78 per share, Viasat trades at 85.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.