Profitability is a key measure of business strength. Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.

Identifying the most compelling profitable companies isn’t always straightforward, and that’s why we started StockStory. That said, here are three profitable companies that balance growth and profitability.

Dycom (DY)

Trailing 12-Month GAAP Operating Margin: 7.7%

Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE: DY) builds and maintains telecommunications infrastructure.

Why Are We Backing DY?

1. Market share has increased this cycle as its 15.2% annual revenue growth over the last two years was exceptional
2. Operating margin expanded by 5.1 percentage points over the last five years as it scaled and became more efficient
3. Incremental sales significantly boosted profitability as its annual earnings per share growth of 21.1% over the last two years outstripped its revenue performance

Dycom’s stock price of $392.57 implies a valuation ratio of 27.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

FTAI Infrastructure (FIP)

Trailing 12-Month GAAP Operating Margin: 6.5%

Spun off from FTAI Aviation in 2021, FTAI Infrastructure (NASDAQ: FIP) invests in and operates infrastructure and related assets across the transportation and energy sectors.

Why Does FIP Stand Out?

1. Impressive 25.2% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 56.6%

At $5.59 per share, FTAI Infrastructure trades at 15.4x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.

HCI Group (HCI)

Trailing 12-Month GAAP Operating Margin: 47.7%

Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE: HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.

Why Will HCI Outperform?

1. Net premiums earned surged by 28.7% annually over the past two years, reflecting strong market share gains this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 75.7% outpaced its revenue gains
3. Impressive 55% annual book value per share growth over the last two years indicates it’s building equity value this cycle

HCI Group is trading at $149.16 per share, or 1.6x forward P/B. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

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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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.