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. Keeping that in mind, here are two profitable companies that leverage their financial strength to beat the competition and one that may struggle to keep up.

One Stock to Sell:

United Parcel Service (UPS)

Trailing 12-Month GAAP Operating Margin: 8.9%

Trademarking its recognizable UPS Brown color, UPS (NYSE: UPS) offers package delivery, supply chain management, and freight forwarding services.

Why Should You Sell UPS?

1. Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 5.7 percentage points
3. Diminishing returns on capital suggest its earlier profit pools are drying up

United Parcel Service’s stock price of $106.13 implies a valuation ratio of 15x forward P/E. If you’re considering UPS for your portfolio, see our FREE research report to learn more.

Two Stocks to Buy:

Dutch Bros (BROS)

Trailing 12-Month GAAP Operating Margin: 9.3%

Started in 1992 by two brothers as a single pushcart, Dutch Bros (NYSE: BROS) is a dynamic coffee chain that’s captured the hearts of coffee enthusiasts across the United States.

Why Should You Buy BROS?

1. Offensive push to build new restaurants and attack its untapped market opportunities is backed by its same-store sales growth
2. Same-store sales growth averaged 5.7% over the past two years, showing it’s bringing new and repeat diners into its restaurants
3. Free cash flow margin expanded by 5.1 percentage points over the last year, providing additional flexibility for investments and share buybacks/dividends

At $54.34 per share, Dutch Bros trades at 69.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Cintas (CTAS)

Trailing 12-Month GAAP Operating Margin: 23%

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas (NASDAQ: CTAS) provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

Why Is CTAS a Good Business?

1. Annual revenue growth of 9.3% over the past five years was outstanding, reflecting market share gains this cycle
2. Share repurchases over the last five years enabled its annual earnings per share growth of 15.6% to outpace its revenue gains
3. CTAS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Cintas is trading at $192.33 per share, or 36.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.