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.

Finding the right balance between price and quality can challenge even the most skilled investors. Luckily for you, we started StockStory to help you identify the real opportunities. Keeping that in mind, here is one high-flying stock to hold for the long term and two with big downside risk.

Two High-Flying Stocks to Sell:

Figs (FIGS)

Forward P/E Ratio: 107.2x

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE: FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Why Do We Avoid FIGS?

1. Performance surrounding its active customers has lagged its peers
2. Low free cash flow margin of 6.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
3. Improving returns on capital suggest management is identifying more profitable investments

At $10.29 per share, Figs trades at 107.2x forward P/E. To fully understand why you should be careful with FIGS, check out our full research report (it’s free).

Proto Labs (PRLB)

Forward P/E Ratio: 36.7x

Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE: PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries.

Why Should You Dump PRLB?

1. Sales trends were unexciting over the last two years as its 2.9% annual growth was below the typical industrials company
2. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Proto Labs is trading at $66.28 per share, or 36.7x forward P/E. Dive into our free research report to see why there are better opportunities than PRLB.

One High-Flying Stock to Buy:

SoFi (SOFI)

Forward P/E Ratio: 35.1x

Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.

Why Is SOFI a Top Pick?

1. Market share has increased this cycle as its 31.6% annual revenue growth over the last two years was exceptional
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 148% over the last two years outstripped its revenue performance

SoFi’s stock price of $21.14 implies a valuation ratio of 35.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 5 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.