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.
Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. 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:
Janus (JBI)
Trailing 12-Month GAAP Operating Margin: 11.1%
Standing out with its digital keyless entry into self-storage room technology, Janus (NYSE: JBI) is a provider of easily accessible self-storage solutions.
Why Do We Think Twice About JBI?
- Sales tumbled by 8.4% annually over the last two years, showing market trends are working against it during this cycle
- Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
At $5.27 per share, Janus trades at 6.7x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including JBI in your portfolio.
Two Stocks to Buy:
Palantir Technologies (PLTR)
Trailing 12-Month GAAP Operating Margin: 38.1%
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ: PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Will PLTR Outperform?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 67.6% over the last year
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- PLTR is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Palantir Technologies’s stock price of $122.73 implies a valuation ratio of 37.5x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Vita Coco (COCO)
Trailing 12-Month GAAP Operating Margin: 19.1%
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.
What Makes COCO Stand Out?
- Stellar 15.2% growth in unit sales over the past two years demonstrates the high demand for its products
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 42.9% outpaced its revenue gains
- Free cash flow margin expanded by 12.9 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends
Vita Coco is trading at $69.51 per share, or 39x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
