While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies — as Jeff Bezos said, “Your margin is my opportunity”.
A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that balances growth and profitability and two that may face some trouble.
Two Stocks to Sell:
Upwork (UPWK)
Trailing 12-Month GAAP Operating Margin: 15.1%
Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ: UPWK) is an online platform where businesses and independent professionals connect to get work done.
Why Are We Hesitant About UPWK?
- Muted 6.6% annual revenue growth over the last three years shows its demand lagged behind its consumer internet peers
- Forecasted revenue decline of 8.8% for the upcoming 12 months implies demand will fall off a cliff
Upwork is trading at $8.41 per share, or 3.9x forward EV/EBITDA. If you’re considering UPWK for your portfolio, see our FREE research report to learn more.
Oshkosh (OSK)
Trailing 12-Month GAAP Operating Margin: 7.5%
Oshkosh (NYSE: OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.
Why Is OSK Not Exciting?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 3.3% declines over the past two years
- Gross margin of 16.3% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Earnings per share have dipped by 11.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term
At $128.50 per share, Oshkosh trades at 10.2x forward P/E. Read our free research report to see why you should think twice about including OSK in your portfolio.
One Stock to Watch:
Stryker (SYK)
Trailing 12-Month GAAP Operating Margin: 21.4%
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Does SYK Stand Out?
- Average organic revenue growth of 9.2% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- $25.84 billion in revenue gives it scale, which leads to bargaining power with customers because there are few trusted alternatives
- Free cash flow margin expanded by 6.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Stryker’s stock price of $277.05 implies a valuation ratio of 17.4x 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
