"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution. While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.
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 is one high-flying stock to hold for the long term and two where the price is not right.
Two High-Flying Stocks to Sell:
Starbucks (SBUX)
Forward P/E Ratio: 38.8x
Started by three friends in Seattle’s historic Pike Place Market, Starbucks (NASDAQ: SBUX) is a globally-renowned coffeehouse chain that offers a wide selection of high-quality coffee, beverages, and food items.
Why Does SBUX Worry Us?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Sales are projected to tank by 3.1% over the next 12 months as demand evaporates
- Efficiency has decreased over the last year as its operating margin fell by 4.9 percentage points
Starbucks’s stock price of $106.50 implies a valuation ratio of 38.8x forward P/E. Check out our free in-depth research report to learn more about why SBUX doesn’t pass our bar.
CAVA (CAVA)
Forward P/E Ratio: 170.5x
Starting from a single Washington, D.C. location, CAVA (NYSE: CAVA) operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes.
Why Does CAVA Fall Short?
- Poor expense management has led to an operating margin of 4.6% that is below the industry average
- Earnings per share have dipped by 12.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Push for growth has led to negative returns on capital, signaling value destruction
CAVA is trading at $89.50 per share, or 170.5x forward P/E. If you’re considering CAVA for your portfolio, see our FREE research report to learn more.
One High-Flying Stock to Watch:
Corning (GLW)
Forward P/E Ratio: 48.3x
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Is GLW on Our Radar?
- Market share has increased this cycle as its 12.6% annual revenue growth over the last two years was exceptional
- Market share is on track to rise over the next 12 months as its 17.1% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings per share grew by 26.9% annually over the last two years and trumped its peers
At $182.93 per share, Corning trades at 48.3x 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
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.
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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.
