Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn’t mean it will thrive tomorrow.
A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. Keeping that in mind, here are two profitable companies that generate reliable profits without sacrificing growth and one that may face some trouble.
One Stock to Sell:
Whirlpool (WHR)
Trailing 12-Month GAAP Operating Margin: 4.4%
Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.
Why Should You Dump WHR?
- Annual sales declines of 5.8% for the past five years show its products and services struggled to connect with the market during this cycle
- Free cash flow margin shrank by 5.4 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Whirlpool’s stock price of $40.18 implies a valuation ratio of 11.5x forward P/E. Check out our free in-depth research report to learn more about why WHR doesn’t pass our bar.
Two Stocks to Buy:
Quanta (PWR)
Trailing 12-Month GAAP Operating Margin: 5.7%
A construction engineering services company, Quanta (NYSE: PWR) provides infrastructure solutions to a variety of sectors, including energy and communications.
Why Is PWR a Good Business?
- Demand is greater than supply as the company’s 21.2% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Market share will likely rise over the next 12 months as its expected revenue growth of 19.6% is robust
- Earnings per share grew by 26% annually over the last two years and trumped its peers
At $723.58 per share, Quanta trades at 50.2x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Fair Isaac Corporation (FICO)
Trailing 12-Month GAAP Operating Margin: 50.4%
Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.
Why Do We Love FICO?
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 29.3% exceeded its revenue gains over the last two years
- FICO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its recently improved profitability means it has even more resources to invest or distribute
- Returns on capital are climbing as management makes more lucrative bets
Fair Isaac Corporation is trading at $1,186 per share, or 24.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
