Profitability is a key measure of business strength. Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.
Not all profitable companies are worth your attention, but we’re here to highlight the ones with the most upside. Keeping that in mind, here are three profitable companies that generate reliable profits without sacrificing growth.
AppLovin (APP)
Trailing 12-Month GAAP Operating Margin: 52%
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ: APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
Why Are We Backing APP?
- Annual revenue growth of 35.8% over the last two years was superb and indicates its market share is rising
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $574.84 per share, AppLovin trades at 31.8x 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.
Deckers (DECK)
Trailing 12-Month GAAP Operating Margin: 23.7%
Established in 1973, Deckers (NYSE: DECK) is a footwear and apparel conglomerate with a portfolio of lifestyle and performance brands.
Why Does DECK Stand Out?
- Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
- Free cash flow margin is anticipated to expand by 3.8 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are growing as management capitalizes on its market opportunities
Deckers’s stock price of $95.96 implies a valuation ratio of 15.5x 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 .
RB Global (RBA)
Trailing 12-Month GAAP Operating Margin: 16.7%
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
Why Are We Bullish on RBA?
- Annual revenue growth of 33.6% over the last two years was superb and indicates its market share increased during this cycle
- Earnings per share have massively outperformed its peers over the last five years, increasing by 19.6% annually
- Robust free cash flow margin of 15.2% gives it many options for capital deployment
RB Global is trading at $104.59 per share, or 25.6x 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.
Stocks We Like Even More
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 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 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
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