Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match. The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.

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 to hold for the long term and one with big downside risk.

One High-Flying Stock to Sell:

LifeStance Health Group (LFST)

Forward P/E Ratio: 30.5x

With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ: LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.

Why Does LFST Worry Us?

1. Smaller revenue base of $1.37 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. Push for growth has led to negative returns on capital, signaling value destruction

At $7.06 per share, LifeStance Health Group trades at 30.5x forward P/E. Read our free research report to see why you should think twice about including LFST in your portfolio.

Two High-Flying Stocks to Watch:

Apple (AAPL)

Forward P/E Ratio: 33.4x

Creator of the iPhone and App Store, Apple (NASDAQ: AAPL) is a legendary developer of consumer electronics and software.

Why Is AAPL Interesting?

1. Apple's revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently.
2. Still, Apple's devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk.
3. The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn’t need over-the-top marketing campaigns to convince people to buy its products.

Apple’s stock price of $270.80 implies a valuation ratio of 33.4x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

JFrog (FROG)

Forward P/S Ratio: 13.3x

Named after the amphibian that continuously evolves from egg to tadpole to adult, JFrog (NASDAQ: FROG) provides a platform that helps organizations securely create, store, manage, and distribute software packages across any system.

Why Will FROG Beat the Market?

1. Billings have averaged 22.9% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

JFrog is trading at $68.14 per share, or 13.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.