Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. That said, here is one profitable company that generates reliable profits without sacrificing growth and two that may struggle to keep up.
Two Stocks to Sell:
Boyd Gaming (BYD)
Trailing 12-Month GAAP Operating Margin: 22.9%
Run by the Boyd family, Boyd Gaming (NYSE: BYD) is a diversified operator of gaming entertainment properties across the United States, offering casino games, hotel accommodations, and dining.
Why Do We Avoid BYD?
- 4.6% annual revenue growth over the last two years was slower than its consumer discretionary peers
- Estimated sales decline of 12% for the next 12 months implies a challenging demand environment
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Boyd Gaming is trading at $86.48 per share, or 13x forward P/E. Dive into our free research report to see why there are better opportunities than BYD.
Vail Resorts (MTN)
Trailing 12-Month GAAP Operating Margin: 18.9%
Founded by two Aspen, Colorado ski patrol guides, Vail Resorts (NYSE: MTN) is a mountain resort company offering luxury experiences in over 30 locations across the globe.
Why Are We Cautious About MTN?
- Annual revenue growth of 1.3% over the last two years was below our standards for the consumer discretionary sector
- Performance surrounding its skier visits has lagged its peers
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1.5%
Vail Resorts’s stock price of $157.12 implies a valuation ratio of 21x forward P/E. If you’re considering MTN for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
AMD (AMD)
Trailing 12-Month GAAP Operating Margin: 7.7%
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
Why Are We Positive On AMD?
- Impressive 31.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 22.4%
- Earnings per share have massively outperformed its peers over the last five years, increasing by 32% annually
At $164.38 per share, AMD trades at 32.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-small-cap company Comfort Systems (+782% 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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