Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. That said, here is one profitable company that generates reliable profits without sacrificing growth and two best left off your watchlist.

Two Stocks to Sell:

Agilysys (AGYS)

Trailing 12-Month GAAP Operating Margin: 8.2%

Originally a subsidiary of Pioneer-Standard Electronics that distributed electronic components, Agilysys (NASDAQ: AGYS) offers a software-as-service platform that helps hotels, resorts, restaurants, and other hospitality businesses manage their operations and workflows.

Why Is AGYS Not Exciting?

1. Sales trends were unexciting over the last three years as its 19.2% annual growth was below the typical software company
2. Steep infrastructure costs and weaker unit economics for a software company are reflected in its low gross margin of 62.4%
3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 1.1 percentage points

At $113.71 per share, Agilysys trades at 10.3x forward price-to-sales. If you’re considering AGYS for your portfolio, see our FREE research report to learn more.

Saia (SAIA)

Trailing 12-Month GAAP Operating Margin: 13.4%

Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ: SAIA) is a provider of freight transportation solutions.

Why Does SAIA Worry Us?

1. Disappointing tons shipped over the past two years indicate demand is soft and that the company may need to revise its strategy
2. Earnings per share have contracted by 4.9% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Free cash flow margin shrank by 15.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Saia is trading at $267.52 per share, or 17.3x forward P/E. Dive into our free research report to see why there are better opportunities than SAIA.

One Stock to Watch:

Ollie's (OLLI)

Trailing 12-Month GAAP Operating Margin: 10.9%

Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ: OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.

Why Is OLLI Interesting?

1. Aggressive strategy of rolling out new stores to gobble up whitespace is prudent given its same-store sales growth
2. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 4.1% over the past two years
3. Projected revenue growth of 14.1% for the next 12 months is above its six-year trend, pointing to accelerating demand

Ollie’s stock price of $129.98 implies a valuation ratio of 33.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio 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