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"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. Keeping that in mind, here are two high-flying stocks to hold for the long term and one where the price is not right.

One High-Flying Stock to Sell:

Novanta (NOVT)

Forward P/E Ratio: 37.7x

Originally a pioneer in the laser scanning industry during the late 1960s, Novanta (NASDAQ:NOVT) offers medicine and manufacturing technology to the medical, life sciences, and manufacturing industries.

Why Do We Think Twice About NOVT?

1. Annual revenue growth of 5% over the last two years was below our standards for the industrials sector

2. Flat earnings per share over the last two years lagged its peers

3. 7.1 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

Novanta is trading at $142.66 per share, or 37.7x forward price-to-earnings. If you’re considering NOVT for your portfolio, see our FREE research report to learn more.

Two High-Flying Stocks to Buy:

O'Reilly (ORLY)

Forward P/E Ratio: 29.2x

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

Why Are We Backing ORLY?

1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 5.4% over the past two years

2. Differentiated product assortment leads to a best-in-class gross margin of 51.2%

3. Strong free cash flow margin of 12.2% enables it to reinvest or return capital consistently

At $1,314 per share, O'Reilly trades at 29.2x forward price-to-earnings. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Howmet (HWM)

Forward P/E Ratio: 39x

Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.

Why Do We Love HWM?

1. Annual revenue growth of 14.5% over the past two years was outstanding, reflecting market share gains this cycle

2. Share buybacks catapulted its annual earnings per share growth to 38.5%, which outperformed its revenue gains over the last two years

3. Free cash flow margin jumped by 18.1 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends