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3 Profitable Stocks with Competitive Advantages

BRBR Cover Image

Profitability is a key measure of business strength. Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.

Identifying the most compelling profitable companies isn’t always straightforward, and that’s why we started StockStory. Keeping that in mind, here are three profitable companies that balance growth and profitability.

BellRing Brands (BRBR)

Trailing 12-Month GAAP Operating Margin: 20.5%

Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.

Why Are We Bullish on BRBR?

  1. Stellar 21.2% growth in unit sales over the past two years demonstrates the high demand for its products
  2. Earnings per share have massively outperformed its peers over the last three years, increasing by 30.9% annually
  3. Industry-leading 47.7% return on capital demonstrates management’s skill in finding high-return investments

BellRing Brands is trading at $75.17 per share, or 33.2x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it’s free.

Construction Partners (ROAD)

Trailing 12-Month GAAP Operating Margin: 5.4%

Founded in 2001, Construction Partners (NASDAQ: ROAD) is a civil infrastructure company that builds and maintains roads, highways, and other infrastructure projects.

Why Does ROAD Catch Our Eye?

  1. Core business can prosper without any help from acquisitions as its organic revenue growth averaged 9.3% over the past two years
  2. Projected revenue growth of 41.6% for the next 12 months is above its two-year trend, pointing to accelerating demand
  3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 100% annually

Construction Partners’s stock price of $83 implies a valuation ratio of 38.8x forward price-to-earnings. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Huron (HURN)

Trailing 12-Month GAAP Operating Margin: 11.1%

Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ: HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.

Why Are We Fans of HURN?

  1. Market share has increased this cycle as its 14.6% annual revenue growth over the last two years was exceptional
  2. Share repurchases over the last two years enabled its annual earnings per share growth of 37.1% to outpace its revenue gains
  3. Returns on capital are increasing as management’s prior bets are starting to bear fruit

At $136.40 per share, Huron trades at 19.2x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.

Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.

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