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.
Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. 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:
Rogers (ROG)
Trailing 12-Month GAAP Operating Margin: 4.9%
With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE: ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications.
Why Should You Sell ROG?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
- Sales over the last five years were less profitable as its earnings per share fell by 15.3% annually while its revenue was flat
- Free cash flow margin dropped by 8.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Rogers is trading at $79.71 per share, or 28.3x forward P/E. Read our free research report to see why you should think twice about including ROG in your portfolio.
LeMaitre (LMAT)
Trailing 12-Month GAAP Operating Margin: 23.3%
Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.
Why Do We Think Twice About LMAT?
- Smaller revenue base of $234.6 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 2.3 percentage points
- Free cash flow margin dropped by 4.3 percentage points over the last five years, implying the company became more capital intensive as competition picked up
LeMaitre’s stock price of $87.80 implies a valuation ratio of 37.9x forward P/E. If you’re considering LMAT for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
United Parks & Resorts (PRKS)
Trailing 12-Month GAAP Operating Margin: 25.4%
Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE: PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.
Why Are We Fans of PRKS?
- Healthy operating margin of 26.5% shows it’s a well-run company with efficient processes
- Share repurchases over the last five years enabled its annual earnings per share growth of 39.7% to outpace its revenue gains
- Returns on capital are climbing as management makes more lucrative bets
At $51.20 per share, United Parks & Resorts trades at 10.5x forward P/E. Is now a good time to buy? See for yourself 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 9 Market-Beating Stocks. 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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