Expensive stocks typically earn their valuations through superior growth rates that other companies simply can’t match. The flip side though is that these lofty expectations make them particularly susceptible to drawdowns when market sentiment shifts.

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 where the price is not right and some other investments you should look into instead.

Rockwell Automation (ROK)

Forward P/E Ratio: 30.2x

One of the first companies to address industrial automation, Rockwell Automation (NYSE: ROK) sells products that help customers extract more efficiency from their machinery.

Why Does ROK Worry Us?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Earnings per share have dipped by 1.5% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Waning returns on capital imply its previous profit engines are losing steam

At $368.50 per share, Rockwell Automation trades at 30.2x forward P/E. Dive into our free research report to see why there are better opportunities than ROK.

Werner (WERN)

Forward P/E Ratio: 40.9x

Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.

Why Do We Steer Clear of WERN?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 4.8% annually over the last two years
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 67.1% annually while its revenue grew
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Werner’s stock price of $30 implies a valuation ratio of 40.9x forward P/E. To fully understand why you should be careful with WERN, check out our full research report (it’s free).

Ducommun (DCO)

Forward P/E Ratio: 30.5x

California’s oldest company, Ducommun (NYSE: DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.

Why Should You Sell DCO?

1. Sales pipeline suggests its future revenue growth won’t meet our standards as its backlog averaged 16% declines over the past two years
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 11.5 percentage points
3. Low free cash flow margin of -0.6% declined over the last five years as its investments ramped, giving it little breathing room

Ducommun is trading at $129.11 per share, or 30.5x forward P/E. Check out our free in-depth research report to learn more about why DCO doesn’t pass our bar.

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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.