Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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 is one profitable company that balances growth and profitability and two that may struggle to keep up.
Two Stocks to Sell:
Angi (ANGI)
Trailing 12-Month GAAP Operating Margin: 6.3%
Created by IAC’s mergers of Angie’s List and HomeAdvisor, ANGI (NASDAQ: ANGI) operates the largest online marketplace for home services in the US.
Why Are We Wary of ANGI?
- Value proposition isn’t resonating strongly as its service requests averaged 21.3% drops over the last two years
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
Angi’s stock price of $8.60 implies a valuation ratio of 4x forward EV/EBITDA. Read our free research report to see why you should think twice about including ANGI in your portfolio.
Albertsons (ACI)
Trailing 12-Month GAAP Operating Margin: 1.9%
With over 20 well-known grocery banners spanning 34 states, Albertsons (NYSE:ACI) operates food and drug retail stores across the US, offering groceries, pharmacy services, and own-brand products under banners like Safeway, Jewel-Osco, and Vons.
Why Are We Cautious About ACI?
- Limited expansion of stores suggests it’s prioritizing efficiency over growth at this stage
- Gross margin of 27.5% is below its competitors, leaving less money for marketing and promotions
- Subpar operating margin of 2% constrains its ability to invest in process improvements or effectively respond to new competitive threats
At $18.04 per share, Albertsons trades at 8.1x forward P/E. If you’re considering ACI for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
QuinStreet (QNST)
Trailing 12-Month GAAP Operating Margin: 1.3%
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Is QNST a Good Business?
- Impressive 41.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 454% annually
- Historical investments are beginning to pay off as its returns on capital are growing
QuinStreet is trading at $10.55 per share, or 7.2x 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
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.