“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 facing an uphill battle and some alternatives you should consider instead.
E.W. Scripps (SSP)
Forward P/E Ratio: 329x
Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ: SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.
Why Do We Pass on SSP?
- Sales were flat over the last five years, indicating it’s failed to expand its business
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- High net-debt-to-EBITDA ratio of 9× could force the company to raise capital on unfavorable terms if market conditions deteriorate
E.W. Scripps’s stock price of $3.28 implies a valuation ratio of 329x forward P/E. Dive into our free research report to see why there are better opportunities than SSP.
Marcus & Millichap (MMI)
Forward P/E Ratio: 49.9x
Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Why Do We Think MMI Will Underperform?
- Products and services have few die-hard fans as sales have declined by 1.5% annually over the last five years
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 7.3 percentage points over the next year
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $32.32 per share, Marcus & Millichap trades at 49.9x forward P/E. Read our free research report to see why you should think twice about including MMI in your portfolio.
Stratasys (SSYS)
Forward P/E Ratio: 56.1x
Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ: SSYS) offers 3D printers and related materials, software, and services to many industries.
Why Do We Think Twice About SSYS?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Cash-burning history makes us doubt the long-term viability of its business model
Stratasys is trading at $7.90 per share, or 56.1x forward P/E. Check out our free in-depth research report to learn more about why SSYS doesn’t pass our bar.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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.
