Expensive stocks often command premium valuations because the market thinks their business models are exceptional. However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.
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 is one high-flying stock to hold for the long term and two with big downside risk.
Two High-Flying Stocks to Sell:
Amtech (ASYS)
Forward P/E Ratio: 30.7x
Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ:ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.
Why Does ASYS Give Us Pause?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 16.3% annually over the last two years
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Negative returns on capital show management lost money while trying to expand the business, and its shrinking returns suggest its past profit sources are losing steam
Amtech’s stock price of $12.21 implies a valuation ratio of 30.7x forward P/E. Check out our free in-depth research report to learn more about why ASYS doesn’t pass our bar.
VSE Corporation (VSEC)
Forward P/E Ratio: 42.8x
With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ:VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.
Why Are We Cautious About VSEC?
- Gross margin of 17.3% reflects its high production costs
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Underwhelming 5.1% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $175.80 per share, VSE Corporation trades at 42.8x forward P/E. Dive into our free research report to see why there are better opportunities than VSEC.
One High-Flying Stock to Watch:
Coherent (COHR)
Forward P/E Ratio: 32.5x
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE:COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Is COHR on Our Radar?
- Annual revenue growth of 16.9% over the past five years was outstanding, reflecting market share gains this cycle
- Projected revenue growth of 14.9% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings per share grew by 38.4% annually over the last two years and trumped its peers
Coherent is trading at $187.70 per share, or 32.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth 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 Growth Stocks for this month. 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-small-cap company Comfort Systems (+782% 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.