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 generate reliable profits without sacrificing growth and one that may face some trouble.
One Stock to Sell:
Golden Entertainment (GDEN)
Trailing 12-Month GAAP Operating Margin: 6.6%
Founded in 2001, Golden Entertainment (NASDAQ:GDEN) is a gaming company operating casinos, taverns, and distributed gaming platforms.
Why Do We Think Twice About GDEN?
- Products and services have few die-hard fans as sales have declined by 7% annually over the last five years
- Anticipated sales growth of 2.8% for the next year implies demand will be shaky
- Poor free cash flow margin of 3.9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
Golden Entertainment’s stock price of $30.35 implies a valuation ratio of 5.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than GDEN.
Two Stocks to Buy:
EMCOR (EME)
Trailing 12-Month GAAP Operating Margin: 9.4%
Through its network of over 70 subsidiaries, EMCOR (NYSE:EME) provides electrical, mechanical, and building construction and services
Why Should You Buy EME?
- Annual revenue growth of 14.8% over the past two years was outstanding, reflecting market share gains this cycle
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Returns on capital are growing as management capitalizes on its market opportunities
EMCOR is trading at $530.88 per share, or 22.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Byrna (BYRN)
Trailing 12-Month GAAP Operating Margin: 9%
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ:BYRN) is a provider of non-lethal weapons.
Why Is BYRN a Top Pick?
- Annual revenue growth of 40.2% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 99.2% annually, topping its revenue gains
- Free cash flow margin increased to break even levels over the last five years, indicating the company has achieved financial self-sustainability
At $31.01 per share, Byrna trades at 47.4x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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