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.
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. Keeping that in mind, 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:
Byrna (BYRN)
Trailing 12-Month GAAP Operating Margin: 10.8%
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ: BYRN) is a provider of non-lethal weapons.
Why Are We Wary of BYRN?
- Suboptimal cost structure is highlighted by its history of operating margin losses
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Byrna is trading at $16.70 per share, or 18.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than BYRN.
Option Care Health (OPCH)
Trailing 12-Month GAAP Operating Margin: 6%
With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ: OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.
Why Is OPCH Not Exciting?
Option Care Health’s stock price of $28.20 implies a valuation ratio of 15.4x forward P/E. Check out our free in-depth research report to learn more about why OPCH doesn’t pass our bar.
One Stock to Watch:
Dick's (DKS)
Trailing 12-Month GAAP Operating Margin: 10.9%
Started as a hunting supply store, Dick’s Sporting Goods (NYSE: DKS) is a retailer that sells merchandise for traditional sports as well as for fitness and outdoor activities.
Why Are We Positive On DKS?
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 4.3% over the past two years
- Demand for the next 12 months is expected to accelerate above its six-year trend as Wall Street forecasts robust revenue growth of 56.8%
- Industry-leading 24.3% return on capital demonstrates management’s skill in finding high-return investments
At $204.57 per share, Dick's trades at 13.8x 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
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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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