Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
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 balances growth and profitability and two best left off your watchlist.
Two Stocks to Sell:
Edgewell Personal Care (EPC)
Trailing 12-Month GAAP Operating Margin: 7%
Boasting brands such as Banana Boat, Schick, and Skintimate, Edgewell Personal Care (NYSE: EPC) sells personal care products in the skin and sun care, shave, and feminine care categories.
Why Do We Pass on EPC?
- 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
- Sales over the last three years were less profitable as its earnings per share fell by 2.6% annually while its revenue was flat
- 4.9 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
At $23.26 per share, Edgewell Personal Care trades at 7.2x forward P/E. Dive into our free research report to see why there are better opportunities than EPC.
Gibraltar (ROCK)
Trailing 12-Month GAAP Operating Margin: 12.8%
Gibraltar (NASDAQ: ROCK) makes renewable energy, agriculture technology and infrastructure products. Its mission statement is to make everyday living more sustainable.
Why Does ROCK Give Us Pause?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 5.4% annually over the last two years
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 25.4%
Gibraltar is trading at $61.62 per share, or 12.3x forward P/E. If you’re considering ROCK for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
UnitedHealth (UNH)
Trailing 12-Month GAAP Operating Margin: 7.3%
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Will UNH Beat the Market?
- Dominant market position is represented by its $422.8 billion in revenue, which gives it negotiating power over membership pricing and reimbursement rates
- Estimated revenue growth of 8.4% for the next 12 months implies its momentum over the last two years will continue
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
UnitedHealth’s stock price of $300.50 implies a valuation ratio of 12.6x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Trump’s April 2025 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.
