Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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 generates reliable profits without sacrificing growth and two that may face some trouble.
Two Stocks to Sell:
EverQuote (EVER)
Trailing 12-Month GAAP Operating Margin: 6.6%
Aiming to simplify a once complicated process, EverQuote (NASDAQ: EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Are We Wary of EVER?
- High marketing expenses suggest it needs to spend heavily on new customer acquisition to sustain momentum
EverQuote is trading at $25.37 per share, or 12x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than EVER.
Hershey (HSY)
Trailing 12-Month GAAP Operating Margin: 20.5%
Best known for its milk chocolate bar and Hershey's Kisses, Hershey (NYSE: HSY) is an iconic company known for its chocolate products.
Why Does HSY Worry Us?
- Falling unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 4.1 percentage points
At $161.75 per share, Hershey trades at 26.2x forward P/E. If you’re considering HSY for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Bloom Energy (BE)
Trailing 12-Month GAAP Operating Margin: 3.4%
Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Why Will BE Outperform?
- Annual revenue growth of 14.5% over the past five years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 68.2% annually, topping its revenue gains
- Free cash flow profile has moved into positive territory over the last five years, indicating the company has passed a significant test
Bloom Energy’s stock price of $21.80 implies a valuation ratio of 48.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
