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”.
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. Keeping that in mind, here are two profitable companies that balance growth and profitability and one best left off your watchlist.
One Stock to Sell:
HP (HPQ)
Trailing 12-Month GAAP Operating Margin: 5.4%
Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.
Why Do We Think HPQ Will Underperform?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Earnings per share were flat over the last five years and fell short of the peer group average
HP is trading at $32.09 per share, or 11x forward P/E. If you’re considering HPQ for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Uber (UBER)
Trailing 12-Month GAAP Operating Margin: 12.1%
Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE: UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight.
Why Will UBER Outperform?
- Has the opportunity to boost monetization through new features and premium offerings as its monthly active platform consumers have grown by 15.6% annually over the last two years
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin increased by 13.3 percentage points over the last few years, giving the company more capital to invest or return to shareholders
At $70.02 per share, Uber trades at 12x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Crane (CR)
Trailing 12-Month GAAP Operating Margin: 17.9%
Based in Connecticut, Crane (NYSE: CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Why Is CR on Our Radar?
- Operating margin improved by 5.3 percentage points over the last five years as it eliminated redundant costs
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 21.9% over the last two years outstripped its revenue performance
- Free cash flow margin expanded by 5.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Crane’s stock price of $202.29 implies a valuation ratio of 26.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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.
