Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn’t mean it will thrive tomorrow.
A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that leverages its financial strength to beat the competition and two that may struggle to keep up.
Two Stocks to Sell:
Conagra (CAG)
Trailing 12-Month GAAP Operating Margin: 11.4%
Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE: CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.
Why Should You Dump CAG?
- Falling unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Projected sales decline of 2% for the next 12 months points to an even tougher demand environment ahead
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up
Conagra is trading at $18.55 per share, or 10.4x forward P/E. Dive into our free research report to see why there are better opportunities than CAG.
Bruker (BRKR)
Trailing 12-Month GAAP Operating Margin: 5.3%
With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker (NASDAQ: BRKR) develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.
Why Does BRKR Worry Us?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- 12.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $39.50 per share, Bruker trades at 18.5x forward P/E. To fully understand why you should be careful with BRKR, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
Itron (ITRI)
Trailing 12-Month GAAP Operating Margin: 11.8%
Founded by a small group of engineers who wanted to build a more efficient way to read utility meters, Itron (NASDAQ: ITRI) offers energy and water management products for the utility industry, municipalities, and industrial customers.
Why Do We Like ITRI?
- Operating margin improved by 10.3 percentage points over the last five years as it eliminated redundant costs
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 74.4% over the last two years outstripped its revenue performance
- Improving returns on capital suggest its past investments are beginning to deliver value
Itron’s stock price of $137 implies a valuation ratio of 22.5x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
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-small-cap company Exlservice (+354% 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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