"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.
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 are two high-flying stocks to hold for the long term and one climbing an uphill battle.
One High-Flying Stock to Sell:
TFS Financial (TFSL)
Forward P/B Ratio: 2.2x
Tracing its roots back to 1938 during the Great Depression era when savings and loans were vital to homeownership, TFS Financial (NASDAQ: TFSL) is a savings and loan holding company that provides mortgage lending, deposit services, and other retail banking products primarily in Ohio and Florida.
Why Should You Dump TFSL?
- Muted 3.9% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Net interest margin of 1.7% reflects its high servicing and capital costs
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 2% annually
TFS Financial’s stock price of $15.10 implies a valuation ratio of 2.2x forward P/B. To fully understand why you should be careful with TFSL, check out our full research report (it’s free).
Two High-Flying Stocks to Watch:
Coherent (COHR)
Forward P/E Ratio: 43x
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Do We Watch COHR?
- Annual revenue growth of 19.8% over the last two years was superb and indicates its market share increased during this cycle
- Projected revenue growth of 34.5% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 82.4% annually
Coherent is trading at $334.37 per share, or 43x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
TTM Technologies (TTMI)
Forward P/E Ratio: 40x
As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ: TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.
Why Is TTMI a Top Pick?
- Market share has increased this cycle as its 17.2% annual revenue growth over the last two years was exceptional
- Market share is on track to rise over the next 12 months as its 27% projected revenue growth implies demand will accelerate from its two-year trend
- Earnings per share have massively outperformed its peers over the last two years, increasing by 35.5% annually
At $155.49 per share, TTM Technologies trades at 40x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI 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%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
