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 best left off your watchlist.
Two Stocks to Sell:
LiveRamp (RAMP)
Trailing 12-Month GAAP Operating Margin: 4.1%
Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE:RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.
Why Does RAMP Fall Short?
- ARR growth averaged a weak 7.4% over the last year, suggesting that competition is pulling some attention away from its software
- Estimated sales growth of 9% for the next 12 months implies demand will slow from its two-year trend
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
At $29.37 per share, LiveRamp trades at 2.3x forward price-to-sales. To fully understand why you should be careful with RAMP, check out our full research report (it’s free for active Edge members).
Dole (DOLE)
Trailing 12-Month GAAP Operating Margin: 2.5%
Known for its delicious pineapples and Hawaiian roots, Dole (NYSE:DOLE) is a global agricultural company specializing in fresh fruits and vegetables.
Why Do We Pass on DOLE?
- Sales stagnated over the last three years and signal the need for new growth strategies
- Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 8.2% that must be offset through higher volumes
- Subpar operating margin of 2.7% constrains its ability to invest in process improvements or effectively respond to new competitive threats
Dole is trading at $14.99 per share, or 10.7x forward P/E. Dive into our free research report to see why there are better opportunities than DOLE.
One Stock to Buy:
Kinsale Capital Group (KNSL)
Trailing 12-Month GAAP Operating Margin: 33.2%
Founded in 2009 during the aftermath of the financial crisis when many insurers were retreating from riskier markets, Kinsale Capital Group (NYSE:KNSL) is an insurance company that specializes in writing policies for hard-to-place, unusual, or high-risk businesses that standard insurers typically avoid.
Why Will KNSL Outperform?
- Strong 23.8% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Annual book value per share growth of 41.8% over the past two years was outstanding, reflecting strong capital accumulation this cycle
- Book value per share outlook for the upcoming 12 months is outstanding and shows it’s on track to build significant equity value
Kinsale Capital Group’s stock price of $392 implies a valuation ratio of 4.6x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
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-micro-cap company Tecnoglass (+1,754% 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.