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. That said, here are three high-flying stocks expanding their competitive advantages.

Doximity (DOCS)

Forward P/S Ratio: 16.6x

Founded in 2010 and named for a combination of “docs” and “proximity”, Doximity (NYSE: DOCS) is the leading social network for U.S. medical professionals.

Why Do We Like DOCS?

Billings have averaged 23.5% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs Strong free cash flow margin of 46.8% enables it to reinvest or return capital consistently

At $51.80 per share, Doximity trades at 16.6x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

Curtiss-Wright (CW)

Forward P/E Ratio: 34.1x

Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.

Why Is CW on Our Radar?

Impressive 10.6% annual revenue growth over the last two years indicates it’s winning market share this cycle Operating margin improvement of 4.7 percentage points over the last five years demonstrates its ability to scale efficiently Share repurchases have amplified shareholder returns as its annual earnings per share growth of 18.2% exceeded its revenue gains over the last two years

Curtiss-Wright’s stock price of $428.45 implies a valuation ratio of 34.1x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Trane Technologies (TT)

Forward P/E Ratio: 32.4x

With low-pressure heating systems as the first product, Trane (NYSE:TT) designs, manufactures, and sells HVAC and refrigeration systems, the former to commercial and residential building customers and the latter to commercial truck manufacturers.

Why Are We Bullish on TT?

Annual revenue growth of 11.6% over the last two years was superb and indicates its market share increased during this cycle Share buybacks catapulted its annual earnings per share growth to 23.7%, which outperformed its revenue gains over the last two years Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are climbing as it finds even more attractive growth opportunities

Story Continues

Trane Technologies is trading at $424.60 per share, or 32.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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 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.

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