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. That said, here is one high-flying stock to hold for the long term and two with big downside risk.
Two High-Flying Stocks to Sell:
fuboTV (FUBO)
Forward P/E Ratio: 2,197x
Originally launched as a soccer streaming platform, fuboTV (NYSE: FUBO) is a video streaming service specializing in live sports, news, and entertainment content.
Why Are We Cautious About FUBO?
- Uptick in domestic subscribers indicates the company’s underlying demand is healthy
- Persistent operating margin losses suggest the business manages its expenses poorly
- Negative free cash flow raises questions about the return timeline for its investments
At $9.72 per share, fuboTV trades at 2,197x forward P/E. If you’re considering FUBO for your portfolio, see our FREE research report to learn more.
Custom Truck One Source (CTOS)
Forward P/E Ratio: 62.5x
Inspired by a family gas station, Custom Truck One Source (NYSE: CTOS) is a distributor of trucks and heavy equipment.
Why Does CTOS Worry Us?
- Sales trends were unexciting over the last two years as its 4.3% annual growth was below the typical industrials company
- Earnings per share have contracted by 45.4% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
Custom Truck One Source is trading at $10.36 per share, or 62.5x forward P/E. To fully understand why you should be careful with CTOS, check out our full research report (it’s free).
One High-Flying Stock to Watch:
CAVA (CAVA)
Forward P/E Ratio: 111.5x
Starting from a single Washington, D.C. location, CAVA (NYSE: CAVA) operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes.
Why Is CAVA Interesting?
- Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth
- Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 9.8% over the past two years
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
CAVA’s stock price of $68.88 implies a valuation ratio of 111.5x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
