Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.

A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that generates reliable profits without sacrificing growth and two that may struggle to keep up.

Two Stocks to Sell:

Burlington (BURL)

Trailing 12-Month GAAP Operating Margin: 7.2%

Founded in 1972 as a discount coat and outerwear retailer, Burlington Stores (NYSE: BURL) is now an off-price retailer that has broadened into general apparel, footwear, and home goods.

Why Do We Think Twice About BURL?

1. Annual sales growth of 9.3% over the last three years lagged behind its consumer retail peers as its large revenue base made it difficult to generate incremental demand
2. Free cash flow margin shrank by 5.1 percentage points over the last year, suggesting the company is consuming more capital to stay competitive
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

Burlington’s stock price of $270.91 implies a valuation ratio of 25.8x forward P/E. Dive into our free research report to see why there are better opportunities than BURL.

VF Corp (VFC)

Trailing 12-Month GAAP Operating Margin: 4%

Owner of The North Face, Vans, and Supreme, VF Corp (NYSE: VFC) is a clothing conglomerate specializing in branded lifestyle apparel, footwear, and accessories.

Why Should You Dump VFC?

1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

VF Corp is trading at $18.38 per share, or 22.4x forward P/E. If you’re considering VFC for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Super Micro (SMCI)

Trailing 12-Month GAAP Operating Margin: 4.4%

Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.

Why Are We Backing SMCI?

1. Annual revenue growth of 68.8% over the last two years was superb and indicates its market share increased during this cycle
2. Enormous revenue base of $21.05 billion provides significant distribution advantages
3. Free cash flow flipped to positive over the last five years, indicating the company has achieved financial self-sustainability

At $29.37 per share, Super Micro trades at 12.8x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

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 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-small-cap company Exlservice (+354% 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.