1 Profitable Stock with Exciting Potential and 2 We Find Risky

August 12, 2025 at 01:03 AM EDT

RNG Cover Image

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

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 is one profitable company that leverages its financial strength to beat the competition and two that may struggle to keep up.

Two Stocks to Sell:

RingCentral (RNG)

Trailing 12-Month GAAP Operating Margin: 2.7%

Founded in 1999 during the dot-com era, RingCentral (NYSE: RNG) provides software as a service that unifies phone, text, fax, video calls and chat in one platform.

Why Is RNG Risky?

Offerings struggled to generate meaningful interest as its average billings growth of 5% over the last year did not impress
Estimated sales growth of 5% for the next 12 months implies demand will slow from its three-year trend
Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue

RingCentral’s stock price of $27.09 implies a valuation ratio of 1x forward price-to-sales. If you’re considering RNG for your portfolio, see our FREE research report to learn more.

THOR Industries (THO)

Trailing 12-Month GAAP Operating Margin: 3.5%

Created through the acquisition and merger of various RV manufacturers, THOR Industries manufactures and sells a range of recreational vehicles, including motorhomes and travel trailers, catering to consumers seeking the freedom and comfort of the RV lifestyle.

Why Do We Steer Clear of THO?

Products and services are facing significant end-market challenges during this cycle as sales have declined by 11.4% annually over the last two years
Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
Waning returns on capital imply its previous profit engines are losing steam

THOR Industries is trading at $95.37 per share, or 19.6x forward P/E. Dive into our free research report to see why there are better opportunities than THO.

One Stock to Watch:

Tecnoglass (TGLS)

Trailing 12-Month GAAP Operating Margin: 26.7%

The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.

Why Do We Like TGLS?

Annual revenue growth of 20.3% over the past five years was outstanding, reflecting market share gains this cycle
Healthy operating margin of 27.3% shows it’s a well-run company with efficient processes, and it turbocharged its profits by achieving some fixed cost leverage
Industry-leading 28.9% return on capital demonstrates management’s skill in finding high-return investments, and its returns are growing as it capitalizes on even better market opportunities

At $77.70 per share, Tecnoglass trades at 17.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% 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

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