1 Standout Stock Boasting Strong Fundamentals and 2 That Fall Short

Are Expensive Stocks Worth the Hype?

Stocks with lofty price tags often reflect the market’s belief in their outstanding business models. The catch, however, is that these high valuations leave little margin for disappointment—any misstep can quickly lead to a sharp decline in value.

Distinguishing genuine long-term value from market speculation is particularly challenging during bullish periods. That’s where StockStory steps in, aiming to guide investors toward resilient, high-quality companies. With that in mind, let’s examine one standout stock strengthening its edge, and two others that may be overvalued.

Two Overpriced Stocks to Consider Selling

Lattice Semiconductor (LSCC)

Forward P/E Ratio: 62.1x

Lattice Semiconductor (NASDAQ:LSCC) is a global player in the semiconductor industry, known for designing programmable chips that boost CPU performance for demanding applications like machine learning.

What’s Holding LSCC Back?

• Sales have dropped by 18.4% per year over the past two years, as customers delayed purchases.
• Operating expenses have grown faster than revenue in the last five years, causing the operating margin to shrink by 18.8 percentage points.
• Earnings per share have increased by only 5.5% annually over five years, lagging behind industry peers.

Currently priced at $84.22 per share, LSCC trades at a steep 62.1x forward P/E.

CAVA (CAVA)

Forward P/E Ratio: 119x

CAVA (NYSE:CAVA) began as a single eatery in Washington, D.C. and has grown into a fast-casual restaurant chain serving customizable Mediterranean-inspired meals.

Why Are We Cautious About CAVA?

• Its operating margin stands at 4.6%, below the industry norm, making it harder to weather unexpected challenges.
• Earnings per share have fallen by 15.6% annually over the past two years, a worrying trend since long-term stock performance often follows EPS growth.
• Negative returns on capital suggest some expansion strategies have not paid off.

With a share price of $66.25 and a forward P/E of 119x, CAVA appears richly valued.

One Promising Stock to Watch

SPX Technologies (SPXC)

Forward P/E Ratio: 29.7x

Founded in 1912 as the Piston Ring Company, SPX Technologies (NYSE:SPXC) provides specialized equipment for HVAC, detection, and measurement needs across industrial, commercial, and utility sectors.

What Sets SPXC Apart?

• Revenue has climbed 12.7% annually over the past two years, indicating strong market share gains.
• Operating profits have improved over five years, thanks to better cost management and efficiency.
• Earnings per share have grown at a robust 23% annual rate over the last two years, outpacing competitors.

SPX Technologies is currently valued at $211 per share, translating to a forward P/E of 29.7x. Is this the right moment to invest?

Discover Even More Compelling Stocks

Don’t let your investment strategy rely on yesterday’s winners. The risks associated with crowded trades are increasing every day.

The next generation of high-growth stocks can be found in our Top 5 Strong Momentum Stocks for this week. This handpicked collection of High Quality companies has delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Our 2020 picks included now-household names like Nvidia, which soared by 1,326% between June 2020 and June 2025, as well as lesser-known success stories such as Tecnoglass, which achieved a 1,754% five-year return. Start your search for the next big winner with StockStory today.