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".
Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here are two profitable companies that leverage their financial strength to beat the competition and one best left off your watchlist.
One Stock to Sell:
Fortive (FTV)
Trailing 12-Month GAAP Operating Margin: 17.9%
Taking its name from the Latin root of "strong", Fortive (NYSE: FTV) manufactures products and develops industrial software for numerous industries.
Why Is FTV Risky?
- 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
- Projected sales growth of 1.9% for the next 12 months suggests sluggish demand
- ROIC of 5.4% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up
Fortive’s stock price of $50.14 implies a valuation ratio of 12.2x forward P/E. If you’re considering FTV for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
FTAI Infrastructure (FIP)
Trailing 12-Month GAAP Operating Margin: 2.8%
Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ: FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.
Why Should You Buy FIP?
- Annual revenue growth of 33.3% over the past three years was outstanding, reflecting market share gains this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
FTAI Infrastructure is trading at $7.15 per share, or 3x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Cigna (CI)
Trailing 12-Month GAAP Operating Margin: 3.6%
With roots dating back to 1792 and serving millions of customers across the globe, The Cigna Group (NYSE: CI) provides healthcare services through its Evernorth Health Services and Cigna Healthcare segments, offering pharmacy benefits, specialty care, and medical plans.
Why Does CI Stand Out?
- Impressive 18.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Dominant market position is represented by its $255.3 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- Earnings growth has comfortably beaten the peer group average over the last five years as its EPS has compounded at 9.1% annually
At $298.50 per share, Cigna trades at 9.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check 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-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
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