"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.

Finding the right balance between price and quality can challenge even the most skilled investors. Luckily for you, we started StockStory to help you identify the real opportunities. Keeping that in mind, here are two high-flying stocks to hold for the long term and one with big downside risk.

One High-Flying Stock to Sell:

Topgolf Callaway (MODG)

Forward P/E Ratio: 323.9x

Formed between the merger of Callaway and Topgolf, Topgolf Callaway (NYSE:MODG) sells golf equipment and operates technology-driven golf entertainment venues.

Why Is MODG Risky?

1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers

2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.4% for the last two years

3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

At $5.52 per share, Topgolf Callaway trades at 323.9x forward price-to-earnings. If you’re considering MODG for your portfolio, see our FREE research report to learn more .

Two High-Flying Stocks to Watch:

Badger Meter (BMI)

Forward P/E Ratio: 34.9x

The developer of the world’s first frost-proof water meter in 1905, Badger Meter (NYSE:BMI) provides water control and measure equipment to various industries.

Why Is BMI a Good Business?

1. Annual revenue growth of 20.9% over the past two years was outstanding, reflecting market share gains this cycle

2. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 36.7% annually

3. BMI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Badger Meter is trading at $170.72 per share, or 34.9x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our full research report, it’s free .

Intuitive Surgical (ISRG)

Forward P/E Ratio: 58.1x

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ:ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Why Do We Watch ISRG?

1. Products are seeing elevated demand as its system placement averaged 9.7% growth over the past two years

2. Forecasted revenue growth of 14.8% for the next 12 months indicates its momentum over the last two years is sustainable

3. Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 11.5% annually