High Flier

Written By
Paul Tracy
Updated November 11, 2020

What is a High Flier?

A high flier is stock that has risen very quickly.

How Does a High Flier Work?

Let's say Company XYZ rises 45% in five days -- well ahead of the market's rise of 10% over that time. The stock volume is exceptionally high -- many investors are interested in buying or selling the stock, and investors are likely buying on expectations of what the company will earn rather than what it has earned. The stock is a high flier, and it is probably overvalued right now.

Why Does a High Flier Matter?

High fliers are the equivalent of one-hit wonders in the music world or reality TV stars -- they come and go very quickly. Tech stocks were famous high fliers in the late 1990s (before the tech bubble burst).

High fliers are very volatile, and they spike and fall quickly. The idea is that investors have to detect and capitalize on a high flier before it falls back to earth. They also have to determine whether a stock is trading based on overly aggressive forward-earnings estimates that have little chance of materializing.

Ask an Expert
All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about High Flier.
Be the first to ask a question

If you have a question about High Flier, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about High Flier, then please ask Paul.

Ask a question Read more from Paul

Read this next

Paul Tracy - profile
Ask an Expert about High Flier

By submitting this form you agree with our Privacy Policy

Don't Know a Financial Term?
Search our library of 4,000+ terms