Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. That said, here is one profitable company that generates reliable profits without sacrificing growth and two that may struggle to keep up.
Two Stocks to Sell:
WESCO (WCC)
Trailing 12-Month GAAP Operating Margin: 5.4%
Based in Pittsburgh, WESCO (NYSE: WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.
Why Does WCC Worry Us?
- Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Poor free cash flow margin of 2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $211 per share, WESCO trades at 14.1x forward P/E. Dive into our free research report to see why there are better opportunities than WCC.
Corning (GLW)
Trailing 12-Month GAAP Operating Margin: 11.9%
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Are We Cautious About GLW?
- Scale is a double-edged sword because it limits the company’s growth potential compared to its smaller competitors, as reflected in its below-average annual revenue increases of 4% for the last two years
- Free cash flow margin shrank by 4.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging
Corning’s stock price of $65.72 implies a valuation ratio of 26.3x forward P/E. To fully understand why you should be careful with GLW, check out our full research report (it’s free).
One Stock to Watch:
Boston Scientific (BSX)
Trailing 12-Month GAAP Operating Margin: 17%
Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.
Why Do We Watch BSX?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 15.6% over the past two years
- Estimated revenue growth of 13.4% for the next 12 months implies its momentum over the last two years will continue
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 18.4% over the last five years outstripped its revenue performance
Boston Scientific is trading at $104.10 per share, or 34.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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
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