Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. That said, here are two profitable companies that leverage their financial strength to beat the competition and one that may face some trouble.
One Stock to Sell:
CDW (CDW)
Trailing 12-Month GAAP Operating Margin: 7.9%
Serving as a crucial bridge between technology manufacturers and end users since 1984, CDW (NASDAQ: CDW) is a multi-brand provider of information technology solutions that helps businesses and public sector organizations select, implement, and manage hardware, software, and IT services.
Why Should You Dump CDW?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.5% annually over the last two years
- Projected sales growth of 2.1% for the next 12 months suggests sluggish demand
- Flat earnings per share over the last two years underperformed the sector average
CDW’s stock price of $174.80 implies a valuation ratio of 18x forward P/E. Dive into our free research report to see why there are better opportunities than CDW.
Two Stocks to Watch:
BellRing Brands (BRBR)
Trailing 12-Month GAAP Operating Margin: 19.8%
Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
Why Will BRBR Beat the Market?
- Unit sales were phenomenal over the past two years, showing demand is robust and retailers can’t stock enough of its products
- Earnings per share grew by 28% annually over the last three years and trumped its peers
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $57.24 per share, BellRing Brands trades at 24x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Curtiss-Wright (CW)
Trailing 12-Month GAAP Operating Margin: 17.4%
Formed from a merger of 12 companies, Curtiss-Wright (NYSE: CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Why Should CW Be on Your Watchlist?
- Annual revenue growth of 10.6% over the past two years was outstanding, reflecting market share gains this cycle
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Curtiss-Wright is trading at $482 per share, or 38.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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