Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.

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

Two Stocks to Sell:

Commvault Systems (CVLT)

Trailing 12-Month GAAP Operating Margin: 7.4%

Originally formed in 1988 as part of Bell Labs, Commvault (NASDAQ: CVLT) provides enterprise software used for data backup and recovery, cloud and infrastructure management, retention, and compliance.

Why Does CVLT Fall Short?

1. Annual revenue growth of 9% over the last three years was well below our standards for the software sector
2. Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 1.6 percentage points

Commvault Systems is trading at $188 per share, or 7.5x forward price-to-sales. Check out our free in-depth research report to learn more about why CVLT doesn’t pass our bar.

Revvity (RVTY)

Trailing 12-Month GAAP Operating Margin: 13.5%

Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.

Why Are We Out on RVTY?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Costs have risen faster than its revenue over the last five years, causing its adjusted operating margin to decline by 8.8 percentage points
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $92.51 per share, Revvity trades at 18.2x forward P/E. To fully understand why you should be careful with RVTY, check out our full research report (it’s free).

One Stock to Buy:

UnitedHealth (UNH)

Trailing 12-Month GAAP Operating Margin: 8.2%

With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.

Why Is UNH a Top Pick?

1. Massive revenue base of $410.1 billion gives it meaningful leverage when negotiating reimbursement rates
2. Share buybacks catapulted its annual earnings per share growth to 13.1%, which outperformed its revenue gains over the last five years
3. ROIC punches in at 21.6%, illustrating management’s expertise in identifying profitable investments

UnitedHealth’s stock price of $306.52 implies a valuation ratio of 10x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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