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".
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 leverages its financial strength to beat the competition and two that may struggle to keep up.
Two Stocks to Sell:
Comcast (CMCSA)
Trailing 12-Month GAAP Operating Margin: 18.7%
Formerly known as American Cable Systems, Comcast (NASDAQ: CMCSA) is a multinational telecommunications company offering a wide range of services.
Why Should You Dump CMCSA?
- Sluggish trends in its domestic broadband customers suggest customers aren’t adopting its solutions as quickly as the company hoped
- Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Comcast is trading at $33.75 per share, or 7.7x forward P/E. Dive into our free research report to see why there are better opportunities than CMCSA.
STERIS (STE)
Trailing 12-Month GAAP Operating Margin: 15.9%
With a mission critical role in preventing healthcare-associated infections, STERIS (NYSE: STE) provides infection prevention products, sterilization services, and medical equipment that help healthcare facilities and life science companies maintain sterile environments.
Why Are We Hesitant About STE?
- ROIC of 5% reflects management’s challenges in identifying attractive investment opportunities
STERIS’s stock price of $230.46 implies a valuation ratio of 23.1x forward P/E. If you’re considering STE for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Pinterest (PINS)
Trailing 12-Month GAAP Operating Margin: 5.3%
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Why Could PINS Be a Winner?
- Monthly Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 27%
- PINS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $38.05 per share, Pinterest trades at 20.9x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
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.
