"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 three high-flying stocks expanding their competitive advantages.
AAON (AAON)
Forward P/E Ratio: 31.3x
Backed by two million square feet of lab testing space, AAON (NASDAQ:AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings.
Why Will AAON Outperform?
- Impressive 20.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 18.2% annually
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
AAON is trading at $76 per share, or 31.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
HEICO (HEI)
Forward P/E Ratio: 64.9x
Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
Why Is HEI a Top Pick?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 9.6% over the past two years
- Earnings per share grew by 25.2% annually over the last two years and trumped its peers
- Robust free cash flow margin of 17.5% gives it many options for capital deployment
At $304.30 per share, HEICO trades at 64.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Intuitive Surgical (ISRG)
Forward P/E Ratio: 62.3x
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ:ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Should ISRG Be on Your Watchlist?
- System Placement averaged 11.8% growth over the past two years and imply healthy demand for its products
- Forecasted revenue growth of 14.6% for the next 12 months indicates its momentum over the last two years is sustainable
- Earnings growth has easily exceeded the peer group average over the last five years as its EPS has compounded at 12.3% annually
Intuitive Surgical’s stock price of $520.15 implies a valuation ratio of 62.3x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. 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 Kadant (+351% 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.