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.
Separating true intrinsic value from speculation isn’t easy, especially during bull markets. That’s where StockStory comes in - to help you find high-quality companies that will stand the test of time. Keeping that in mind, here are three high-flying stocks expanding their competitive advantages.
Snowflake (SNOW)
Forward P/S Ratio: 13.9x
Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE: SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.
Why Are We Fans of SNOW?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 26.5% over the last year
- Platform plays a pivotal role in customer workflows as its net revenue retention rate punches in at 126%
- Expected revenue growth of 24.2% for the next year suggests its market share will rise
At $199.63 per share, Snowflake trades at 13.9x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Robinhood (HOOD)
Forward EV/EBITDA Ratio: 28.7x
With a mission to democratize finance, Robinhood (NASDAQ: HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.
Why Are We Backing HOOD?
- Customer spending is rising as the company has focused on monetization over the last two years, leading to 43.1% annual growth in its average revenue per user
- Additional sales over the last three years increased its profitability as the 64.6% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 1,103.9 percentage points over the last few years, giving the company more chips to play with
Robinhood is trading at $62.76 per share, or 28.7x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
CAVA (CAVA)
Forward P/E Ratio: 136.9x
Starting from a single Washington, D.C. location, CAVA (NYSE: CAVA) operates a fast-casual restaurant chain offering customizable Mediterranean-inspired dishes.
Why Is CAVA on Our Radar?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Customers are lining up to eat at its restaurants as the company’s same-store sales growth averaged 13.8% over the past two years
- Free cash flow margin increased by 7.9 percentage points over the last year, giving the company more capital to invest or return to shareholders
CAVA’s stock price of $83.43 implies a valuation ratio of 136.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 176% over the last five years.
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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
