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Nobody ever likes to rain on someone else’s parade, especially when it comes to the investment world, where money is involved. Still, the feeling of “winning” (as Charlie Sheen put it best) sometimes blinds even the most seasoned investor when his eyes are so closely focused on the next Benjamin. Netflix (NASDAQ:NFLX) investors come into mind right about now. That is why we decided to review a few names today that are illustrating stellar performance but are now trading at a rich premium.

The P/E ratio is a price-multiple valuation that tells investors whether a company could be technically be undervalued or overvalued based off its trailing twelve month earnings. Now some will argue that this is something of a backward-looking indicator, and we don’t fully disagree, but we aren’t going to completely disregard the past. Without the past there is no basis for comparison for the future to see how well a company is doing. The higher this ratio, is the better earnings will need to be, moving forward, in order to satisfy the premium that has been built into the stock by investors.

We first looked for companies trading at strong premiums (P/E>30). From this narrowed pool we looked to indentify those that have not only outperformed the S&P 500 YTD but also over the last three difficult months.

The list is ranked is from highest to lowest by the P/E ratio:

1. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)

Sector

Healthcare

Industry

Biotechnology

Market Cap

$12,836M

Beta

0.40

The company develops and sells drug therapies for people with serious and life-threatening conditions. The company has a P/E ratio of 113.64. ALXN has risen by 72.71% YTD and 17.94% in the last 3 months alone. The short interest was 3.10% as of 09/30/2011.

2. Amazon.com Inc. (NASDAQ:AMZN)

Sector

Consumer Cyclical

Industry

Specialty Retail

Market Cap

$107,860M

Beta

0.85

The company is one of the top online consumer platforms in the world, where people can find a variety of items to buy, along with product reviews. The company has a P/E ratio of 105.26. AMZN has risen by 32.01% YTD and 9.74% in the last 3 months alone. The short interest was N/A as of 09/30/2011.

3. Sourcefire, Inc. (NASDAQ:FIRE)

Sector

Technology

Industry

Software - Application

Market Cap

$853M

Beta

1.01

The company provides network security solutions. The company has a P/E ratio of 100.00. FIRE has risen by 14.69% YTD and 7.36% in the last 3 months alone. The short interest was 26.80% as of 09/30/2011.

4. Ameren Corp. (NYSE:AEE)

Sector

Utilities

Industry

Utilities - Diversified

Market Cap

$7,712M

Beta

0.53

The company operates both regulated and nonregulated electric generation businesses. The company has a P/E ratio of 81.30. AEE has risen by 17.29% YTD and 10.03% in the last 3 months alone. The short interest was N/A as of 09/30/2011.

5. Emdeon Inc. (NYSE:EM)

Sector

Industrials

Industry

Business Services

Market Cap

$2,199M

Beta

0.91

The company offers revenue and payment management solutions relative to the U.S. healthcare system. The company has a P/E ratio of 72.99. EM has risen by 40.1% YTD and 42.31% in the last 3 months alone. The short interest was 8.90% as of 09/30/2011.

6. Red Hat, Inc. (NYSE:RHT)

Sector

Technology

Industry

Software - Application

Market Cap

$9,144M

Beta

1.01

The company offers open-source software solutions. The company has a P/E ratio of 70.92. RHT has risen by 3.88% YTD and 6.44% in the last 3 months alone. The short interest was 3.00% as of 09/30/2011.

7. IAC/InterActiveCorp. (NASDAQ:IACI)

Sector

Technology

Industry

Internet Content & Information

Market Cap

$3,569M

Beta

0.56

The company operates a variety of diversified businesses. The company has a P/E ratio of 68.97. IACI has risen by 46.38% YTD and 10.23% in the last 3 months alone. The short interest was N/A as of 09/30/2011.

8. American Tower Corp. (NYSE:AMT)

Sector

Commun Services

Industry

Telecom Services

Market Cap

$22,653M

Beta

0.56

The company is a wireless and broadcast communications infrastructure company. The company has a P/E ratio of 59.88. AMT has risen by 10.84% YTD and 7.35% in the last 3 months alone. The short interest was 1.10% as of 09/30/2011.

9. Advisory Board Company. (NASDAQ:ABCO)

Sector

Industrials

Industry

Business Services

Market Cap

$1,007M

Beta

0.63

The company provides a variety of decision support tools and analytics for the health care industry within the US. The company has a P/E ratio of 58.14. ABCO has risen by 30.51% YTD and 10.19% in the last 3 months alone. The short interest was 6.60% as of 09/30/2011.

10. RightNow Technologies, Inc. (NASDAQ:RNOW)

Sector

Technology

Industry

Software - Application

Market Cap

$1,428M

Beta

0.76

The company offers communication services to both residential and business clients in Canada. The company has a P/E ratio of 54.95. RNOW has risen by 81.41% YTD and 40.74% in the last 3 months alone. The short interest was 14.70% as of 09/30/2011.

We hope this list helps as investors review companies with high P/Es and bullish momentum.

Disclosure:

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 10 High-Flying Stocks At A Premium That Could Retrace