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 three high-flying stocks with strong fundamentals.
Nova (NVMI)
Forward P/E Ratio: 40.7x
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Why Should You Buy NVMI?
- Market share has increased this cycle as its 30.4% annual revenue growth over the last two years was exceptional
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 33.2% annually
- NVMI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Nova is trading at $422.56 per share, or 40.7x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Vita Coco (COCO)
Forward P/E Ratio: 36x
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.
Why Are We Backing COCO?
- Unit sales were phenomenal over the past two years, showing demand is robust and retailers can’t stock enough of its products
- Earnings per share grew by 70.9% annually over the last three years and trumped its peers
- ROIC punches in at 36.9%, illustrating management’s expertise in identifying profitable investments, and its rising returns show it’s making even more lucrative bets
At $58.36 per share, Vita Coco trades at 36x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
ATI (ATI)
Forward P/E Ratio: 35.1x
With its materials flying in nearly every commercial and military aircraft in service today, ATI (NYSE: ATI) produces highly specialized materials and components for aerospace, defense, medical, and energy applications using advanced metallurgy and manufacturing processes.
Why Is ATI a Good Business?
- Operating margin expanded by 9.8 percentage points over the last five years as it scaled and became more efficient
- Share buybacks catapulted its annual earnings per share growth to 19.5%, which outperformed its revenue gains over the last two years
- Free cash flow margin grew by 12.1 percentage points over the last five years, giving the company more chips to play with
ATI’s stock price of $141.50 implies a valuation ratio of 35.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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.
