Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
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 are two profitable companies that balance growth and profitability and one that may face some trouble.
One Stock to Sell:
Moog (MOG.A)
Trailing 12-Month GAAP Operating Margin: 9.4%
Responsible for the flight control actuation system integrated in the B-2 stealth bomber, Moog (NYSE:MOG.A) provides precision motion control solutions used in aerospace and defense applications
Why Does MOG.A Fall Short?
- Annual revenue growth of 4.9% over the last five years was below our standards for the industrials sector
- Free cash flow margin dropped by 6.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up
- Underwhelming 8.1% return on capital reflects management’s difficulties in finding profitable growth opportunities
Moog’s stock price of $324.63 implies a valuation ratio of 34.7x forward P/E. To fully understand why you should be careful with MOG.A, check out our full research report (it’s free).
Two Stocks to Watch:
ServiceNow (NOW)
Trailing 12-Month GAAP Operating Margin: 13.7%
Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow (NYSE:NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Do We Love NOW?
- ARR growth averaged 21% over the last year, showing customers are willing to take multi-year bets on its software
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 13.7%, and its profits increased over the last year as it scaled
- Robust free cash flow margin of 34.9% gives it many options for capital deployment
ServiceNow is trading at $107.69 per share, or 7x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Hims & Hers Health (HIMS)
Trailing 12-Month GAAP Operating Margin: 5.2%
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Does HIMS Stand Out?
- Customer trends over the past two years show it’s maintaining a steady flow of new contracts that can potentially increase in value over time
- Free cash flow margin increased by 21.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
At $16.14 per share, Hims & Hers Health trades at 16.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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 9 Market-Beating Stocks. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.