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.
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 to hold for the long term and one where the price is not right.
One High-Flying Stock to Sell:
Solaris Energy Infrastructure (SEI)
Forward P/E Ratio: 56.4x
After acquiring Mobile Energy Rentals in 2024 to enter the distributed power market, Solaris Energy Infrastructure (NYSE:SEI) leases mobile power equipment and provides logistics services for oil and gas well completion.
Why Does SEI Fall Short?
- Revenue base of $692.1 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Costly operations and weak unit economics result in an inferior gross margin of 40.6% that must be offset through higher production volumes
- Cash-burning history makes us doubt the long-term viability of its business model
Solaris Energy Infrastructure’s stock price of $76.00 implies a valuation ratio of 56.4x forward P/E. Dive into our free research report to see why there are better opportunities than SEI.
Two High-Flying Stocks to Buy:
Sterling (STRL)
Forward P/E Ratio: 32.8x
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ:STRL) provides civil infrastructure construction.
Why Will STRL Beat the Market?
- Annual revenue growth of 19.8% over the last two years was superb and indicates its market share increased during this cycle
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
- Returns on capital are growing as management capitalizes on its market opportunities
Sterling is trading at $813.69 per share, or 32.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Primoris (PRIM)
Forward P/E Ratio: 30.2x
Listed on the NASDAQ in 2008, Primoris (NYSE:PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.
Why Do We Love PRIM?
- Backlog has averaged 86.5% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Earnings per share have massively outperformed its peers over the last two years, increasing by 29.1% annually
- Free cash flow margin increased by 4.2 percentage points over the last five years, giving the company more capital to invest or return to shareholders
At $150.01 per share, Primoris trades at 30.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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.