2 Hot Stocks That Can Live Up to Their Lofty Valuations

In a declining market, oftentimes the highest quality companies still command high multiples due to their competitive position in their respective markets. When a company has some sort of competitive advantage, such as being the first mover in a market with high barriers to entry, it will often retain a premium multiple.

Here are two such companies that are either part of a duopoly or have monopolies on certain important products. These companies may cheapen at times but rarely become "cheap." Let's find out a bit more about these two hot stocks that live up to their lofty valuations.

Image source: Getty Images.

Source Fool.com