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.
Separating true intrinsic value from speculation isn’t easy, especially during bull markets. That’s where StockStory comes in - to help you find high-quality companies that will stand the test of time. That said, 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:
Manhattan Associates (MANH)
Forward P/S ratio: 12.3x
Built on a "versionless" cloud architecture that delivers quarterly updates to all customers, Manhattan Associates (NASDAQ: MANH) develops cloud-based software that helps retailers, wholesalers, and manufacturers manage their supply chains, inventory, and omnichannel operations.
Why Does MANH Fall Short?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 10.9% underwhelmed
- Gross margin of 57% reflects its high servicing costs
- Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 1.5 percentage points
Manhattan Associates’s stock price of $253.80 implies a valuation ratio of 12.3x forward price-to-sales. To fully understand why you should be careful with MANH, check out our full research report (it’s free).
Two high-flying stocks to watch:
Costco (COST)
Forward P/E ratio: 45.9x
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ: COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Why Does COST Catch Our Eye?
- Same-store sales growth averaged 7.1% over the past two years, showing it’s bringing new and repeat shoppers into its stores
- Enormous revenue base of $303.2 billion compensates for its low gross margin and provides significant leverage in supplier negotiations
- ROIC punches in at 35.2%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities
At $1,058 per share, Costco trades at 45.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Corning (GLW)
Forward P/E ratio: 28.5x
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 Do We Love GLW?
- Annual revenue growth of 15.7% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 32.2% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 7.5 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Corning is trading at $104.98 per share, or 28.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks we like even more
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
