2 High-Flying Stocks to Consider Right Now and 1 We Turn Down

2 High-Flying Stocks to Consider Right Now and 1 We Turn Down

Jabin Bastian

Mon, February 16, 2026 at 1:33 PM GMT+9 3 min read

In this article:

•                                       StockStory Top Pick 
  

  CRWD

  +4.40%

 MMI  

 +3.36%  

 

 

 AMAT  

 +8.08%  

“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 two high-flying stocks with strong fundamentals and one where the price is not right.

One High-Flying Stock to Sell:

Marcus & Millichap (MMI)

Forward P/E Ratio: 43.9x

Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Why Do We Avoid MMI?

Muted 1% annual revenue growth over the last five years shows its demand lagged behind its consumer discretionary peers

Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Marcus & Millichap is trading at $25.99 per share, or 43.9x forward P/E. If you’re considering MMI for your portfolio, see our FREE research report to learn more.

Two High-Flying Stocks to Watch:

CrowdStrike (CRWD)

Forward P/S Ratio: 18.6x

Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ:CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.

Why Will CRWD Beat the Market?

Billings have averaged 24% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time

Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory

Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently

At $429.27 per share, CrowdStrike trades at 18.6x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Applied Materials (AMAT)

Forward P/E Ratio: 27.3x

Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ:AMAT) is the largest provider of semiconductor wafer fabrication equipment.

Story Continues  

Why Are We Positive On AMAT?

Highly efficient business model is illustrated by its impressive 28.7% operating margin

Free cash flow margin of 21.7% is higher than many in the industry, giving it breathing room and optionality

Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

Applied Materials’s stock price of $353.89 implies a valuation ratio of 27.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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.

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