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".
A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. 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:
Cushman & Wakefield (CWK)
Trailing 12-Month GAAP Operating Margin: 4.3%
With expertise in the commercial real estate sector, Cushman & Wakefield (NYSE: CWK) is a global Chicago-based real estate firm offering a comprehensive range of services to clients.
Why Are We Out on CWK?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 4.3% annually
- Low free cash flow margin of 1.9% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
At $14.86 per share, Cushman & Wakefield trades at 11.7x forward P/E. Dive into our free research report to see why there are better opportunities than CWK.
Radian Group (RDN)
Trailing 12-Month GAAP Operating Margin: 58.2%
Founded during the housing boom of 1977 and weathering multiple real estate cycles since, Radian Group (NYSE: RDN) provides mortgage insurance and real estate services, helping lenders manage risk and homebuyers achieve affordable homeownership.
Why Do We Think Twice About RDN?
- Net premiums earned contracted by 3% annually over the last five years, showing unfavorable market dynamics this cycle
- Day-to-day expenses have swelled relative to revenue over the last two years as its combined ratio increased by 23.4 percentage points
- Earnings per share fell by 1.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
Radian Group’s stock price of $34.38 implies a valuation ratio of 1x forward P/B. Check out our free in-depth research report to learn more about why RDN doesn’t pass our bar.
One Stock to Watch:
Amazon (AMZN)
Trailing 12-Month GAAP Operating Margin: 11.4%
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.
Why Does AMZN Stand Out?
- Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
- The company's best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
- Though dominant, Amazon's capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?
Amazon is trading at $225.76 per share, or 32.6x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. 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
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