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. Keeping that in mind, here is one profitable company that generates reliable profits without sacrificing growth and two that may struggle to keep up.

Two Stocks to Sell:

Pilgrim's Pride (PPC)

Trailing 12-Month GAAP Operating Margin: 9.4%

Offering everything from pre-marinated to frozen chicken, Pilgrim’s Pride (NASDAQ: PPC) produces, processes, and distributes chicken products to retailers and food service customers.

Why Do We Think PPC Will Underperform?

1. Annual sales growth of 1.8% over the last three years lagged behind its consumer staples peers as its large revenue base made it difficult to generate incremental demand
2. Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
3. Easily substituted products (and therefore stiff competition) result in an inferior gross margin of 12.5% that must be offset through higher volumes

Pilgrim's Pride’s stock price of $41.37 implies a valuation ratio of 9.9x forward P/E. Check out our free in-depth research report to learn more about why PPC doesn’t pass our bar.

Cummins (CMI)

Trailing 12-Month GAAP Operating Margin: 11.7%

With more than half of the heavy-duty truck market using its engines at one point, Cummins (NYSE: CMI) offers engines and power systems.

Why Are We Hesitant About CMI?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Sales are projected to be flat over the next 12 months and imply weak demand
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Cummins is trading at $577.13 per share, or 24x forward P/E. Read our free research report to see why you should think twice about including CMI in your portfolio.

One Stock to Buy:

SoFi (SOFI)

Trailing 12-Month GAAP Operating Margin: 12.1%

Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.

Why Are We Backing SOFI?

1. Annual revenue growth of 31.3% over the last two years was superb and indicates its market share increased during this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 92.5% outpaced its revenue gains

At $26.11 per share, SoFi trades at 50.3x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 244% over the last five years (as of June 30, 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.