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. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one best left off your watchlist.
One Stock to Sell:
CSG (CSGS)
Trailing 12-Month GAAP Operating Margin: 11%
Powering billions of critical customer interactions annually, CSG Systems (NASDAQ: CSGS) provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.
Why Do We Avoid CSGS?
- Muted 2.6% annual revenue growth over the last two years shows its demand lagged behind its business services peers
- Subscale operations are evident in its revenue base of $1.21 billion, meaning it has fewer distribution channels than its larger rivals
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
CSG’s stock price of $61.66 implies a valuation ratio of 12.5x forward P/E. Read our free research report to see why you should think twice about including CSGS in your portfolio.
Two Stocks to Watch:
Duolingo (DUOL)
Trailing 12-Month GAAP Operating Margin: 9.5%
Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ: DUOL) is a mobile app helping people learn new languages.
Why Is DUOL a Top Pick?
- Monthly Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 311% outpaced its revenue gains
- Robust free cash flow margin of 35% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $345.63 per share, Duolingo trades at 49.5x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Ameriprise Financial (AMP)
Trailing 12-Month GAAP Operating Margin: 36.8%
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE: AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
Why Are We Fans of AMP?
- Share buybacks propelled its annual earnings per share growth to 17.6%, which outperformed its revenue gains over the last five years
- Annual tangible book value per share growth of 27.4% over the past two years was outstanding, reflecting strong capital accumulation this cycle
- ROE punches in at 56.5%, illustrating management’s expertise in identifying profitable investments
Ameriprise Financial is trading at $505.22 per share, or 12.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
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 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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