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. That said, here is one profitable company that leverages its financial strength to beat the competition and two that may face some trouble.

Two Stocks to Sell:

Marriott (MAR)

Trailing 12-Month GAAP Operating Margin: 15.1%

Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ: MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.

Why Does MAR Give Us Pause?

1. Revenue per room has disappointed over the past two years due to weaker trends in its daily rates and occupancy levels
2. Estimated sales growth of 4% for the next 12 months implies demand will slow from its two-year trend
3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 9% for the last two years

At $267.06 per share, Marriott trades at 26.2x forward P/E. Dive into our free research report to see why there are better opportunities than MAR.

Agilent (A)

Trailing 12-Month GAAP Operating Margin: 21.4%

Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies (NYSE: A) provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.

Why Does A Fall Short?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 3% annually over the last two years
2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
3. Free cash flow margin shrank by 3.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

Agilent is trading at $116.12 per share, or 20.3x forward P/E. Check out our free in-depth research report to learn more about why A doesn’t pass our bar.

One Stock to Buy:

Oscar Health (OSCR)

Trailing 12-Month GAAP Operating Margin: 1.7%

Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.

Why Is OSCR a Top Pick?

1. Impressive 50.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Adjusted operating margin improvement of 51.2 percentage points over the last five years demonstrates its ability to scale efficiently
3. Earnings per share grew by 75.6% annually over the last three years, massively outpacing its peers

Oscar Health’s stock price of $14.30 implies a valuation ratio of 30x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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).

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