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華爾街日報1 High-Flying Stock on Our Buy List and 2 We Turn Down
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.
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. Keeping that in mind, here is one high-flying stock to hold for the long term and two climbing an uphill battle.
Two High-Flying Stocks to Sell:
Under Armour (UAA)
Forward P/E Ratio: 43x
Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE:UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.
Why Do We Steer Clear of UAA?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $5.73 per share, Under Armour trades at 43x forward P/E. To fully understand why you should be careful with UAA, check out our full research report (it’s free for active Edge members).
Corning (GLW)
Forward P/E Ratio: 30.1x
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 Are We Cautious About GLW?
- Annual sales growth of 6.7% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.4 percentage points
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging
Corning’s stock price of $89.43 implies a valuation ratio of 30.1x forward P/E. Dive into our free research report to see why there are better opportunities than GLW.
One High-Flying Stock to Buy:
Construction Partners (ROAD)
Forward P/E Ratio: 40.2x
Founded in 2001, Construction Partners (NASDAQ:ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.
Why Will ROAD Beat the Market?
- Notable projected revenue growth of 22.3% for the next 12 months hints at market share gains
- Additional sales over the last two years increased its profitability as the 53.7% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 6.5 percentage points over the last five years, giving the company more chips to play with
Construction Partners is trading at $115.82 per share, or 40.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.