While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that balances growth and profitability and two best left off your watchlist.

Two Stocks to Sell:

Adtalem (ATGE)

Trailing 12-Month GAAP Operating Margin: 19.6%

Formerly known as DeVry Education Group, Adtalem Global Education (NYSE: ATGE) is a global provider of workforce solutions and educational services.

Why Do We Think Twice About ATGE?

1. Lackluster 9.7% annual revenue growth over the last two years indicates the company is losing ground to competitors
2. Estimated sales growth of 6.4% for the next 12 months implies demand will slow from its two-year trend
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Adtalem is trading at $122.11 per share, or 17.7x forward P/E. Dive into our free research report to see why there are better opportunities than ATGE.

Arrow Electronics (ARW)

Trailing 12-Month GAAP Operating Margin: 2.7%

Founded as a single retail store, Arrow Electronics (NYSE: ARW) provides electronic components and enterprise computing solutions to businesses globally.

Why Should You Dump ARW?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Eroding returns on capital suggest its historical profit centers are aging

Arrow Electronics’s stock price of $124.14 implies a valuation ratio of 10.6x forward P/E. To fully understand why you should be careful with ARW, check out our full research report (it’s free).

One Stock to Watch:

Armstrong World (AWI)

Trailing 12-Month GAAP Operating Margin: 25.7%

Started as a two-man shop dating back to the 1860s, Armstrong (NYSE: AWI) provides ceiling and wall products to commercial and residential spaces.

Why Could AWI Be a Winner?

1. Offerings and unique value proposition resonate with customers, as seen in its above-market 9.2% annual sales growth over the last two years
2. Disciplined cost controls and effective management resulted in a strong long-term operating margin of 24.6%
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

At $150.45 per share, Armstrong World trades at 21x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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 5 Growth Stocks for this month. 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