2 Profitable Stocks Worth Investigating and 1 to Be Wary Of

Yahoo

08-07-2025

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. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may face some trouble.
Trailing 12-Month GAAP Operating Margin: 4.1%
Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ:CHRW) offers freight transportation and logistics services.
Why Do We Steer Clear of CHRW?
Annual sales declines of 12.1% for the past two years show its products and services struggled to connect with the market during this cycle
Issuance of new shares over the last two years caused its earnings per share to fall by 13.7% annually, even worse than its revenue declines
Eroding returns on capital suggest its historical profit centers are aging
C.H. Robinson Worldwide is trading at $96.50 per share, or 20x forward P/E. Check out our free in-depth research report to learn more about why CHRW doesn't pass our bar.
Trailing 12-Month GAAP Operating Margin: 30.9%
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Could LRCX Be a Winner?
Excellent operating margin of 29.6% highlights the efficiency of its business model, and its profits increased over the last five years as it scaled
Strong free cash flow margin of 26.6% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety
Industry-leading 63.1% return on capital demonstrates management's skill in finding high-return investments
At $98.01 per share, Lam Research trades at 26x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it's free.
Trailing 12-Month GAAP Operating Margin: 21.8%
One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.
Why Are We Bullish on GE?
Annual revenue growth of 14.5% over the last two years was superb and indicates its market share increased during this cycle
Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
Improving returns on capital reflect management's ability to monetize investments
GE Aerospace's stock price of $248.60 implies a valuation ratio of 44.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free.
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out 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 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 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