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2 Profitable Stocks with Solid Fundamentals and 1 Facing Headwinds

GDEN Cover Image

Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn’t mean it will thrive tomorrow.

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 are two profitable companies that generate reliable profits without sacrificing growth and one that may struggle to keep up.

One Stock to Sell:

Golden Entertainment (GDEN)

Trailing 12-Month GAAP Operating Margin: 3.4%

Founded in 2001, Golden Entertainment (NASDAQ: GDEN) is a gaming company operating casinos, taverns, and distributed gaming platforms.

Why Should You Sell GDEN?

  1. Annual revenue declines of 1.8% over the last five years indicate problems with its market positioning
  2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6% for the last two years
  3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $29.31 per share, Golden Entertainment trades at 33.6x forward P/E. Check out our free in-depth research report to learn more about why GDEN doesn’t pass our bar.

Two Stocks to Watch:

Amgen (AMGN)

Trailing 12-Month GAAP Operating Margin: 24.7%

Founded in 1980 during the early days of the biotechnology revolution, Amgen (NASDAQ: AMGN) is a biotechnology company that discovers, develops, and manufactures innovative medicines to treat serious illnesses like cancer, osteoporosis, and autoimmune diseases.

Why Could AMGN Be a Winner?

  1. 14.2% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
  2. Revenue base of $36.75 billion gives it economies of scale and some negotiating power
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Amgen’s stock price of $383.69 implies a valuation ratio of 17.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Ameriprise Financial (AMP)

Trailing 12-Month GAAP Operating Margin: 36.9%

Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE: AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.

Why Are We Backing AMP?

  1. Share repurchases over the last five years enabled its annual earnings per share growth of 22.8% to outpace its revenue gains
  2. Impressive 43.5% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
  3. ROE punches in at 62.4%, illustrating management’s expertise in identifying profitable investments

Ameriprise Financial is trading at $474.61 per share, or 11x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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 Kadant (+351% five-year return). Find your next big winner with StockStory today.

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