Profitable companies tend to be more resilient, giving them the flexibility to invest and return capital to shareholders. Businesses that consistently generate earnings can better navigate downturns and capitalize on new opportunities.
Identifying the most compelling profitable companies isn’t always straightforward, and that’s why we started StockStory. That said, here are three profitable companies that generate reliable profits without sacrificing growth.
DoubleVerify (DV)
Trailing 12-Month GAAP Operating Margin: 11.9%
Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE: DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.
Why Could DV Be a Winner?
- Market share has increased as its 27.9% annual revenue growth over the last five years was exceptional
- Superior software functionality and low servicing costs result in a premier gross margin of 82.1%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
DoubleVerify is trading at $11.30 per share, or 2.4x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Texas Roadhouse (TXRH)
Trailing 12-Month GAAP Operating Margin: 9.2%
With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.
Why Is TXRH a Good Business?
- Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth
- Same-store sales growth averaged 7.5% over the past two years, showing it’s bringing new and repeat diners into its restaurants
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 71.2% annually
Texas Roadhouse’s stock price of $166.30 implies a valuation ratio of 23.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
Booz Allen Hamilton (BAH)
Trailing 12-Month GAAP Operating Margin: 11.5%
With roots dating back to 1914 and deep ties to nearly all U.S. cabinet-level departments, Booz Allen Hamilton (NYSE: BAH) provides management consulting, technology services, and cybersecurity solutions primarily to U.S. government agencies and military branches.
Why Are We Fans of BAH?
- Core business can prosper without any help from acquisitions as its organic revenue growth averaged 10.7% over the past two years
- $11.96 billion in revenue allows it to spread its fixed costs across a wider base
- Share repurchases over the last five years enabled its annual earnings per share growth of 13.5% to outpace its revenue gains
At $103.50 per share, Booz Allen Hamilton trades at 15.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum 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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