"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. That said, here are three high-flying stocks climbing an uphill battle and some alternatives you should consider instead.
Intel (INTC)
Forward P/E Ratio: 66.1x
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ:INTC) is a leading manufacturer of computer processors and graphics chips.
Why Should You Dump INTC?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.6% annually over the last five years
- Inability to adjust its cost structure while its revenue declined over the last five years led to a 49.2 percentage point drop in the company’s operating margin
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 39.4 percentage points
At $21.12 per share, Intel trades at 66.1x forward P/E. Read our free research report to see why you should think twice about including INTC in your portfolio.
Pursuit (PRSU)
Forward P/E Ratio: 37.5x
With attractions ranging from glacier tours in the Canadian Rockies to an oceanfront geothermal lagoon in Iceland, Pursuit Attractions and Hospitality (NYSE:PRSU) operates iconic travel experiences, experiential marketing services, and exhibition management across North America and Europe.
Why Are We Wary of PRSU?
- Annual sales declines of 16.4% for the past five years show its products and services struggled to connect with the market
- Low free cash flow margin of 1.4% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Negative returns on capital show that some of its growth strategies have backfired
Pursuit trades at a stock price of $34.68. Check out our free in-depth research report to learn more about why PRSU doesn’t pass our bar.
Crane (CR)
Forward P/E Ratio: 33.1x
Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Why Do We Steer Clear of CR?
- Sales tumbled by 6.1% annually over the last five years, showing market trends are working against its favor during this cycle
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Issuance of new shares over the last two years caused its earnings per share to fall by 6.7% annually while its revenue grew
Crane’s stock price of $195.82 implies a valuation ratio of 33.1x forward P/E. To fully understand why you should be careful with CR, check out our full research report (it’s free).
Stocks We Like More
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 6 Stocks for this week. 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 Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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