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.

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 two high-flying stocks expanding their competitive advantages and one where the price is not right.

One High-Flying Stock to Sell:

Titan International (TWI)

Forward P/E Ratio: 167.6x

Acquiring Goodyear’s farm tire business in 2005, Titan (NYSE: TWI) is a manufacturer and supplier of wheels, tires, and undercarriages used in off-highway vehicles such as construction vehicles.

Why Do We Think TWI Will Underperform?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
2. Sales over the last two years were less profitable as its earnings per share fell by 46.7% annually while its revenue was flat
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $8.27 per share, Titan International trades at 167.6x forward P/E. Check out our free in-depth research report to learn more about why TWI doesn’t pass our bar.

Two High-Flying Stocks to Buy:

Vertiv (VRT)

Forward P/E Ratio: 42.7x

Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.

Why Is VRT a Top Pick?

1. Core business can prosper without any help from acquisitions as its organic revenue growth averaged 21.9% over the past two years
2. Free cash flow margin expanded by 16 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
3. Returns on capital are growing as management capitalizes on its market opportunities

Vertiv’s stock price of $279.46 implies a valuation ratio of 42.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Insulet (PODD)

Forward P/E Ratio: 32x

Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.

Why Are We Bullish on PODD?

1. Average constant currency growth of 25.9% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
2. Free cash flow margin jumped by 30.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
3. Rising returns on capital show management is finding more attractive investment opportunities

Insulet is trading at $203.42 per share, or 32x 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

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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.