Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. That said, here are two profitable companies that balance growth and profitability and one that may face some trouble.
One stock to sell:
Universal Logistics (ULH)
Trailing 12-month GAAP operating margin: 3.7%
Founded in 1932, Universal Logistics (NASDAQ: ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.
Why Is ULH Risky?
- Annual sales declines of 1.8% for the past five years show its products and services struggled to connect with the market during this cycle
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
At $32.39 per share, Universal Logistics trades at 16.4x forward P/E. If you’re considering ULH for your portfolio, see our FREE research report to learn more.
Two stocks to buy:
CLEAR Secure (YOU)
Trailing 12-month GAAP operating margin: 26.5%
Recognized by its signature blue lanes and biometric pods at airport checkpoints across America, CLEAR Secure (NYSE: YOU) provides biometric identity verification technology that allows subscribers to bypass regular security lines at airports and access secure experiences at various venues.
Why Will YOU Beat the Market?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 24.4% over the last year
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Strong free cash flow margin of 43% enables it to reinvest or return capital consistently
CLEAR Secure’s stock price of $58.02 implies a valuation ratio of 4x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Permian Resources (PR)
Trailing 12-month GAAP operating margin: 40.1%
Controlling roughly 450,000 net acres in America's most productive oil patch, Permian Resources (NYSE: PR) is an oil and natural gas producer that drills wells and extracts hydrocarbons from underground reservoirs in West Texas and New Mexico.
Why Do We Love PR?
- Impressive 48.8% annual revenue growth over the last ten years indicates it’s winning market share this cycle
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 76.1%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Permian Resources is trading at $22.28 per share, or 9x 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.
