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.
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 generate reliable profits without sacrificing growth and one that may face some trouble.
One Stock to Sell:
The New York Times (NYT)
Trailing 12-Month GAAP Operating Margin: 15.2%
Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Do We Pass on NYT?
- Sluggish trends in its subscribers suggest customers aren’t adopting its solutions as quickly as the company hoped
- Operating margin of 14.2% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
The New York Times’s stock price of $71.01 implies a valuation ratio of 27.1x forward P/E. Read our free research report to see why you should think twice about including NYT in your portfolio.
Two Stocks to Watch:
Coupang (CPNG)
Trailing 12-Month GAAP Operating Margin: 2.3%
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Why Do We Like CPNG?
- Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 11.3% annually over the last two years
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 35.4% annually, topping its revenue gains
- Free cash flow margin grew by 9.1 percentage points over the last few years, giving the company more chips to play with
Coupang is trading at $22.86 per share, or 19.7x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Gorman-Rupp (GRC)
Trailing 12-Month GAAP Operating Margin: 13.8%
Powering fluid dynamics since 1934, Gorman-Rupp (NYSE:GRC) has evolved from its Ohio origins into a global manufacturer and seller of pumps and pump systems.
Why Are We Fans of GRC?
- Annual revenue growth of 13.5% over the last five years was superb and indicates its market share increased during this cycle
- Backlog has averaged 12.7% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Earnings per share grew by 33% annually over the last two years, massively outpacing its peers
At $49.92 per share, Gorman-Rupp trades at 22.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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-micro-cap company Kadant (+351% 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.