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. Keeping that in mind, 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:
Hilton (HLT)
Forward P/E Ratio: 31x
Founded in 1919, Hilton Worldwide (NYSE:HLT) is a global hospitality company with a portfolio of hotel brands.
Why Are We Wary of HLT?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 4.3% over the last five years was below our standards for the consumer discretionary sector
- Weak revenue per room over the past two years indicates challenges in maintaining pricing power and occupancy rates
- Estimated sales growth of 6.8% for the next 12 months implies demand will slow from its two-year trend
Hilton is trading at $252.81 per share, or 31x forward P/E. If you’re considering HLT for your portfolio, see our FREE research report to learn more.
Two High-Flying Stocks to Watch:
AppLovin (APP)
Forward P/S Ratio: 25.3x
Co-founded by Adam Foroughi, who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ:APP) is both a mobile game studio and provider of marketing and monetization tools for mobile app developers.
Why Does APP Catch Our Eye?
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Excellent operating margin of 42.8% highlights the efficiency of its business model, and its profits increased over the last year as it scaled
- Robust free cash flow margin of 49.3% gives it many options for capital deployment
AppLovin’s stock price of $394.74 implies a valuation ratio of 25.3x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Celsius (CELH)
Forward P/E Ratio: 38.3x
With its proprietary MetaPlus formula as the basis for key products, Celsius (NASDAQ:CELH) offers energy drinks that feature natural ingredients to help in fitness and weight management.
Why Is CELH Interesting?
- Impressive 49.5% annual revenue growth over the last three years indicates it's winning market share
- Earnings per share grew by 77.6% annually over the last three years and trumped its peers
- CELH is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $40.49 per share, Celsius trades at 38.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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.