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".
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 leverages its financial strength to beat the competition and two that may struggle to keep up.
Two Stocks to Sell:
MasTec (MTZ)
Trailing 12-Month GAAP Operating Margin: 4.2%
Involved in the 1996 Olympic Games MasTec (NYSE:MTZ) is an infrastructure construction company that specializes in the telecommunications, energy, and utility industries.
Why Does MTZ Worry Us?
- Gross margin of 12.9% is below its competitors, leaving less money to invest in areas like marketing and R&D
- Growth came at the expense of profits over the last five years as its substandard operating margin deteriorated even further
- Free cash flow margin dropped by 4.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up
MasTec’s stock price of $219.01 implies a valuation ratio of 28.8x forward P/E. Dive into our free research report to see why there are better opportunities than MTZ.
Northern Trust (NTRS)
Trailing 12-Month GAAP Operating Margin: 30.3%
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ:NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Why Are We Cautious About NTRS?
- Annual revenue growth of 5.2% over the last five years was below our standards for the financials sector
- Earnings per share lagged its peers over the last five years as they only grew by 6.6% annually
At $145.72 per share, Northern Trust trades at 15.3x forward P/E. Read our free research report to see why you should think twice about including NTRS in your portfolio.
One Stock to Watch:
ATI (ATI)
Trailing 12-Month GAAP Operating Margin: 14.8%
With its materials flying in nearly every commercial and military aircraft in service today, ATI (NYSE:ATI) produces highly specialized materials and components for aerospace, defense, medical, and energy applications using advanced metallurgy and manufacturing processes.
Why Are We Positive On ATI?
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Free cash flow margin grew by 19.7 percentage points over the last five years, giving the company more chips to play with
- Improving returns on capital suggest its past investments are beginning to deliver value
ATI is trading at $123.48 per share, or 32.6x 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
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.