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".

Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. 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:

Zoom (ZM)

Trailing 12-Month GAAP Operating Margin: 18.1%

Started by Eric Yuan who once ran engineering for Cisco’s video conferencing business, Zoom (NASDAQ: ZM) offers an easy to use, cloud-based platform for video conferencing, audio conferencing and screen sharing.

Why Does ZM Give Us Pause?

1. Average billings growth of 5% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
2. Customers have churned over the last year due to the commoditized nature of its software, as reflected in its 98% net revenue retention rate
3. Anticipated sales growth of 3% for the next year implies demand will be shaky

At $78.29 per share, Zoom trades at 5.1x forward price-to-sales. Read our free research report to see why you should think twice about including ZM in your portfolio.

Diebold Nixdorf (DBD)

Trailing 12-Month GAAP Operating Margin: 5.1%

With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE: DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.

Why Are We Hesitant About DBD?

1. Sales tumbled by 2.9% annually over the last five years, showing market trends are working against its favor during this cycle
2. Cash-burning history makes us doubt the long-term viability of its business model
3. Negative returns on capital show management lost money while trying to expand the business

Diebold Nixdorf’s stock price of $59 implies a valuation ratio of 15x forward P/E. If you’re considering DBD for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

OSI Systems (OSIS)

Trailing 12-Month GAAP Operating Margin: 12.3%

With security scanners deployed at airports and borders worldwide and patient monitors used in hospitals across the globe, OSI Systems (NASDAQ: OSIS) designs and manufactures specialized electronic systems for security screening, patient monitoring, and optoelectronic applications.

Why Are We Positive On OSIS?

1. Impressive 18.5% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Earnings per share grew by 27.4% annually over the last two years, massively outpacing its peers
3. Rising returns on capital show the company is starting to reap the benefits of its past investments

OSI Systems is trading at $232.51 per share, or 23.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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.