Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may struggle to keep up.
One Stock to Sell:
OneWater (ONEW)
Trailing 12-Month GAAP Operating Margin: 3.3%
A public company since early 2020, OneWater Marine (NASDAQ:ONEW) sells boats, yachts, and other marine products.
Why Are We Hesitant About ONEW?
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
OneWater is trading at $14.66 per share, or 8.1x forward P/E. If you’re considering ONEW for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
HEICO (HEI)
Trailing 12-Month GAAP Operating Margin: 22%
Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
Why Will HEI Outperform?
- Average organic revenue growth of 9.6% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 25.2% annually
- HEI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $324.67 per share, HEICO trades at 69.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Blue Bird (BLBD)
Trailing 12-Month GAAP Operating Margin: 9.7%
With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Why Do We Love BLBD?
- Market share has increased this cycle as its 16.5% annual revenue growth over the last two years was exceptional
- Additional sales over the last two years increased its profitability as the 156% annual growth in its earnings per share outpaced its revenue
- Returns on capital are climbing as management makes more lucrative bets
Blue Bird’s stock price of $45.50 implies a valuation ratio of 10.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today