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.

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. Keeping that in mind, here are three high-flying stocks climbing an uphill battle and some alternatives you should consider instead.

PENN Entertainment (PENN)

Forward P/E Ratio: 37.2x

Established in 1982, PENN Entertainment (NASDAQ: PENN) is a diversified American operator of casinos, sports betting, and entertainment venues.

Why Should You Sell PENN?

1. Lackluster 11.9% annual revenue growth over the last five years indicates the company is losing ground to competitors
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens

PENN Entertainment’s stock price of $13.11 implies a valuation ratio of 37.2x forward P/E. To fully understand why you should be careful with PENN, check out our full research report (it’s free).

Harley-Davidson (HOG)

Forward P/E Ratio: 73x

Founded in 1903, Harley-Davidson (NYSE: HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.

Why Do We Steer Clear of HOG?

1. Demand for its offerings was relatively low as its number of motorcycles sold has underwhelmed
2. Free cash flow margin is forecasted to shrink by 4.4 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Harley-Davidson is trading at $20.59 per share, or 73x forward P/E. If you’re considering HOG for your portfolio, see our FREE research report to learn more.

RXO (RXO)

Forward P/E Ratio: 7,973.1x

With access to millions of trucks, RXO (NYSE: RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.

Why Do We Think RXO Will Underperform?

1. Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $15.37 per share, RXO trades at 7,973.1x forward P/E. Check out our free in-depth research report to learn more about why RXO doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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.