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.
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 leverages its financial strength to beat the competition and two best left off your watchlist.
Two Stocks to Sell:
Golden Entertainment (GDEN)
Trailing 12-Month GAAP Operating Margin: 6.4%
Founded in 2001, Golden Entertainment (NASDAQ: GDEN) is a gaming company operating casinos, taverns, and distributed gaming platforms.
Why Are We Hesitant About GDEN?
- Sales tumbled by 3.3% annually over the last five years, showing consumer trends are working against its favor
- Estimated sales growth of 1.1% for the next 12 months is soft and implies weaker demand
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
At $24.36 per share, Golden Entertainment trades at 31.4x forward P/E. Read our free research report to see why you should think twice about including GDEN in your portfolio.
Matson (MATX)
Trailing 12-Month GAAP Operating Margin: 16.9%
Founded by a Swedish orphan, Matson (NYSE: MATX) is a provider of ocean transportation and logistics services.
Why Is MATX Not Exciting?
- 1% annual revenue growth over the last two years was slower than its industrials peers
- Projected sales decline of 7.5% for the next 12 months points to a tough demand environment ahead
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Matson is trading at $102.93 per share, or 11.5x forward EV-to-EBITDA. To fully understand why you should be careful with MATX, check out our full research report (it’s free).
One Stock to Watch:
AbbVie (ABBV)
Trailing 12-Month GAAP Operating Margin: 18.8%
Born from a 2013 spinoff of Abbott Laboratories' pharmaceutical business, AbbVie (NYSE: ABBV) is a biopharmaceutical company that develops and markets medications for autoimmune diseases, cancer, neurological disorders, and other complex health conditions.
Why Are We Positive On ABBV?
- Dominant market position is represented by its $58.33 billion in revenue, which creates significant barriers to entry in this highly regulated industry
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- ROIC punches in at 17.9%, illustrating management’s expertise in identifying profitable investments
AbbVie’s stock price of $210.60 implies a valuation ratio of 15.9x 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
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 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).
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