"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. 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:

Microchip Technology (MCHP)

Forward P/E Ratio: 37.6x

Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.

Why Are We Out on MCHP?

1. Sales tumbled by 4.2% annually over the last five years, showing market trends are working against its favor during this cycle
2. Inability to adjust its cost structure while its revenue declined over the last five years led to a 17.6 percentage point drop in the company’s operating margin
3. Free cash flow margin dropped by 15.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up

At $64.34 per share, Microchip Technology trades at 37.6x forward P/E. If you’re considering MCHP for your portfolio, see our FREE research report to learn more.

Two High-Flying Stocks to Buy:

Nvidia (NVDA)

Forward P/E Ratio: 32.3x

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ: NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Why Will NVDA Outperform?

1. Annual revenue growth of 125% over the past two years was outstanding, reflecting market share gains this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 79.5% exceeded its revenue gains over the last five years
3. Robust free cash flow margin of 45.4% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy

Nvidia is trading at $177.22 per share, or 32.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Construction Partners (ROAD)

Forward P/E Ratio: 46.2x

Founded in 2001, Construction Partners (NASDAQ: ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.

Why Should You Buy ROAD?

1. Average organic revenue growth of 9.6% over the past two years demonstrates its ability to expand independently without relying on acquisitions
2. Additional sales over the last two years increased its profitability as the 70.6% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin grew by 5.1 percentage points over the last five years, giving the company more chips to play with

Construction Partners’s stock price of $122.25 implies a valuation ratio of 46.2x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. 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 ServiceNow (+178% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.