Profitable companies tend to be more resilient, giving them the flexibility to invest and return capital to shareholders. Businesses that consistently generate earnings can better navigate downturns and capitalize on new opportunities.
Not all profitable companies are worth your attention, but we’re here to highlight the ones with the most upside. Keeping that in mind, here are three profitable companies that leverage their financial strength to beat the competition.
United Rentals (URI)
Trailing 12-Month GAAP Operating Margin: 25.8%
Owning the largest rental fleet in the world, United Rentals (NYSE: URI) provides equipment rental and related services to construction, industrial, and infrastructure industries.
Why Could URI Be a Winner?
- Impressive 12.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Highly efficient business model is illustrated by its impressive 25.6% operating margin, and it turbocharged its profits by achieving some fixed cost leverage
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 16.7% exceeded its revenue gains over the last five years
United Rentals is trading at $816.84 per share, or 18.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
HCA Healthcare (HCA)
Trailing 12-Month GAAP Operating Margin: 14.7%
With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE: HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.
Why Is HCA a Top Pick?
- Dominant market position is represented by its $71.59 billion in revenue, which creates significant barriers to entry in this highly regulated industry
- Share buybacks catapulted its annual earnings per share growth to 20.7%, which outperformed its revenue gains over the last five years
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
At $362.60 per share, HCA Healthcare trades at 14x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
IMAX (IMAX)
Trailing 12-Month GAAP Operating Margin: 13.5%
Originally developed for World Expo '67 in Montreal as an innovative projection system, IMAX (NYSE: IMAX) provides proprietary large-format cinema technology and systems that deliver immersive movie experiences with enhanced image quality and sound.
Why Are We Bullish on IMAX?
- Market share has increased this cycle as its 19.7% annual revenue growth over the last five years was exceptional
- Free cash flow turned positive over the last five years, showing the company is at an important crossroads
- Historical investments are beginning to pay off as its returns on capital are growing
IMAX’s stock price of $28.98 implies a valuation ratio of 22.8x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
Trump’s April 2024 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
