A company with profits isn’t always a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.

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 balances growth and profitability and two that may face some trouble.

Two Stocks to Sell:

Owens Corning (OC)

Trailing 12-Month GAAP Operating Margin: 10.1%

Credited with the discovery of fiberglass, Owens Corning (NYSE: OC) supplies building and construction materials to the United States and international markets.

Why Does OC Give Us Pause?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Sales are projected to tank by 6.7% over the next 12 months as demand evaporates
3. Free cash flow margin dropped by 4.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Owens Corning’s stock price of $138.70 implies a valuation ratio of 9.1x forward P/E. Read our free research report to see why you should think twice about including OC in your portfolio.

Vontier (VNT)

Trailing 12-Month GAAP Operating Margin: 17.7%

A spin-off of a spin-off, Vontier (NYSE: VNT) provides electronic products and systems to the transportation, automotive, and manufacturing sectors.

Why Do We Think VNT Will Underperform?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Free cash flow margin dropped by 14.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $35.81 per share, Vontier trades at 11.3x forward P/E. If you’re considering VNT for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

ADP (ADP)

Trailing 12-Month GAAP Operating Margin: 26.3%

Processing one out of every six paychecks in the United States, ADP (NASDAQ: ADP) provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.

Why Should ADP Be on Your Watchlist?

1. Enormous revenue base of $20.2 billion provides significant distribution advantages
2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
3. Returns on capital are growing as management capitalizes on its market opportunities

ADP is trading at $321.37 per share, or 30.3x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 176% over the last five years.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.