Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.
Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here are two profitable companies that leverage their financial strength to beat the competition and one best left off your watchlist.
One Stock to Sell:
Bunge Global (BG)
Trailing 12-Month GAAP Operating Margin: 1.8%
With origins dating back to 1818 and operations spanning both hemispheres to balance seasonal harvests, Bunge Global (NYSE: BG) is an agribusiness and food company that processes oilseeds, grains, and other agricultural commodities into vegetable oils, protein meals, flours, and specialty ingredients.
Why Are We Cautious About BG?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.5% over the last three years was below our standards for the consumer staples sector
- Earnings per share fell by 19.1% annually over the last three years while its revenue grew, showing its incremental sales were much less profitable
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Bunge Global is trading at $119.84 per share, or 14.8x forward P/E. Read our free research report to see why you should think twice about including BG in your portfolio.
Two Stocks to Buy:
Monolithic Power Systems (MPWR)
Trailing 12-Month GAAP Operating Margin: 26.1%
Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ: MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.
Why Do We Love MPWR?
- Annual revenue growth of 27% over the last five years was superb and indicates its market share increased during this cycle
- Free cash flow margin expanded by 7.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Industry-leading 43.5% return on capital demonstrates management’s skill in finding high-return investments
Monolithic Power Systems’s stock price of $1,470 implies a valuation ratio of 65.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
RB Global (RBA)
Trailing 12-Month GAAP Operating Margin: 15.5%
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
Why Will RBA Beat the Market?
- Annual revenue growth of 27.2% over the last five years was superb and indicates its market share increased during this cycle
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 18.9% annually
- Robust free cash flow margin of 15.5% gives it many options for capital deployment
At $104.20 per share, RB Global trades at 23.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
