Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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

Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. That said, here is one profitable company that leverages its financial strength to beat the competition and two that may face some trouble.

Two Stocks to Sell:

BWX (BWXT)

Trailing 12-Month GAAP Operating Margin: 13.5%

Contributing components and materials to the famous Manhattan Project in the 1940s, BWX (NYSE: BWXT) is a manufacturer and service provider of nuclear components and fuel for government and commercial industries.

Why Does BWXT Fall Short?

1. Annual revenue growth of 6.9% over the last five years was below our standards for the industrials sector
2. Day-to-day expenses have swelled relative to revenue over the last five years as its operating margin fell by 2.3 percentage points
3. Earnings per share lagged its peers over the last five years as they only grew by 4.2% annually

BWX is trading at $179.21 per share, or 48.5x forward P/E. If you’re considering BWXT for your portfolio, see our FREE research report to learn more.

NVR (NVR)

Trailing 12-Month GAAP Operating Margin: 17.4%

Known for its unique land acquisition strategy, NVR (NYSE: NVR) is a respected homebuilder and mortgage company in the United States.

Why Is NVR Not Exciting?

1. Backlog growth averaged a weak 1.3% over the past two years, suggesting it may need to tweak its product roadmap or go-to-market strategy
2. Sales are projected to tank by 6.9% over the next 12 months as demand evaporates
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

NVR’s stock price of $7,859 implies a valuation ratio of 18.3x forward P/E. Read our free research report to see why you should think twice about including NVR in your portfolio.

One Stock to Buy:

RB Global (RBA)

Trailing 12-Month GAAP Operating Margin: 16.7%

Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.

Why Will RBA Outperform?

1. Annual revenue growth of 33.6% over the last two years was superb and indicates its market share increased during this cycle
2. Earnings per share have massively outperformed its peers over the last five years, increasing by 20.6% annually
3. Robust free cash flow margin of 15.1% gives it many options for capital deployment

At $114.11 per share, RB Global trades at 27.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).

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 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.