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. That said, here is one profitable company that generates reliable profits without sacrificing growth and two best left off your watchlist.
Two Stocks to Sell:
Wolverine Worldwide (WWW)
Trailing 12-Month GAAP Operating Margin: 7.4%
Founded in 1883, Wolverine Worldwide (NYSE: WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony.
Why Is WWW Risky?
- Sales tumbled by 1.6% annually over the last five years, showing consumer trends are working against its favor
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Push for growth has led to negative returns on capital, signaling value destruction, and its falling returns suggest its earlier profit pools are drying up
Wolverine Worldwide’s stock price of $31.53 implies a valuation ratio of 25x forward P/E. If you’re considering WWW for your portfolio, see our FREE research report to learn more.
Pitney Bowes (PBI)
Trailing 12-Month GAAP Operating Margin: 13.3%
With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes (NYSE: PBI) provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.
Why Are We Wary of PBI?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 9.5% annually over the last five years
- Sales are projected to tank by 1.3% over the next 12 months as its demand continues evaporating
- 5× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $11.90 per share, Pitney Bowes trades at 9.2x forward P/E. To fully understand why you should be careful with PBI, check out our full research report (it’s free).
One Stock to Watch:
PTC (PTC)
Trailing 12-Month GAAP Operating Margin: 30%
Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ: PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM.
Why Could PTC Be a Winner?
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
- Highly efficient business model is illustrated by its impressive 30% operating margin, and its rise over the last year was fueled by some leverage on its fixed costs
- Strong free cash flow margin of 34.4% enables it to reinvest or return capital consistently
PTC is trading at $204.11 per share, or 8.9x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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 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-small-cap company Exlservice (+354% 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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