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.
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 expanding their competitive advantages.
Palantir Technologies (PLTR)
Forward P/S Ratio: 31.2x
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ:PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Should You Buy PLTR?
- Billings have averaged 76.7% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $144.46 per share, Palantir Technologies trades at 31.2x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Ross Stores (ROST)
Forward P/E Ratio: 31.8x
Selling excess inventory or overstocked items from other retailers, Ross Stores (NASDAQ:ROST) is an off-price concept that sells apparel and other goods at prices much lower than department stores.
Why Are We Bullish on ROST?
- Same-store sales growth lends it the confidence to gradually expand its store base so it can reach more customers
- Comparable store sales rose by 5.4% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
Ross Stores’s stock price of $252.48 implies a valuation ratio of 31.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
BrightSpring Health Services (BTSG)
Forward P/E Ratio: 29.6x
Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
Why Do We Like BTSG?
- Market share has increased this cycle as its 23.9% annual revenue growth over the last two years was exceptional
- Economies of scale give it some operating leverage when demand rises
- Projected revenue growth of 14.1% for the next 12 months suggests its momentum from the last two years will persist
BrightSpring Health Services is trading at $61.18 per share, or 29.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.