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. Keeping that in mind, here is one high-flying stock with strong fundamentals and two with big downside risk.

Two High-Flying Stocks to Sell:

Intel (INTC)

Forward P/E Ratio: 104.9x

Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.

Why Should You Dump INTC?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.2% annually over the last five years
2. Sales were less profitable over the last five years as its earnings per share fell by 40.1% annually, worse than its revenue declines
3. Free cash flow margin dropped by 18.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $50.24 per share, Intel trades at 104.9x forward P/E. Dive into our free research report to see why there are better opportunities than INTC.

AeroVironment (AVAV)

Forward P/E Ratio: 47x

Focused on the future of autonomous military combat, AeroVironment (NASDAQ: AVAV) specializes in advanced unmanned aircraft systems and electric vehicle charging solutions.

Why Are We Hesitant About AVAV?

1. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 15.3 percentage points
2. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 8.4% annually
3. 6.3 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

AeroVironment is trading at $184.85 per share, or 47x forward P/E. Read our free research report to see why you should think twice about including AVAV in your portfolio.

One High-Flying Stock to Watch:

Intuitive Surgical (ISRG)

Forward P/E Ratio: 46.3x

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Why Should ISRG Be on Your Watchlist?

1. Annual revenue growth of 18.9% over the past two years was outstanding, reflecting market share gains this cycle
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
3. Earnings per share have massively outperformed its peers over the last five years, increasing by 21.4% annually

Intuitive Surgical’s stock price of $453.35 implies a valuation ratio of 46.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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.