Profitability is a key measure of business strength. Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.
Even among profitable businesses, only a select few truly maximize their potential - and StockStory is here to help you find them. That said, here are three profitable companies that leverage their financial strength to beat the competition.
Amazon (AMZN)
Trailing 12-Month GAAP Operating Margin: 11%
Founded by Jeff Bezos after quitting his stock-picking job at D.E. Shaw, Amazon (NASDAQ: AMZN) is the world’s largest online retailer and provider of cloud computing services.
Why Are We Fans of AMZN?
- Amazon revolutionized the way consumers shop. This isn’t the only tailwind to its impressive revenue growth, as its highly profitable AWS segment has also driven top-line momentum.
- The company's best-in-class revenue growth coupled with modest operating leverage on its past infrastructure investments has led to elite EPS growth over a multi-year period.
- Though dominant, Amazon's capital-intensive e-commerce business means its profitability is structurally lower than its pure-play tech peers. Can the company pull it up, or are we reaching a ceiling?
At $234.44 per share, Amazon trades at 31.4x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Coherent (COHR)
Trailing 12-Month GAAP Operating Margin: 7.8%
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Why Is COHR Interesting?
- Annual revenue growth of 16.9% over the last five years was superb and indicates its market share increased during this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 14.8%
- Earnings growth has trumped its peers over the last two years as its EPS has compounded at 38.4% annually
Coherent’s stock price of $165.19 implies a valuation ratio of 30.4x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
HCA Healthcare (HCA)
Trailing 12-Month GAAP Operating Margin: 15.2%
With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE: HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.
Why Should You Buy HCA?
- Massive revenue base of $74.37 billion in a highly regulated sector makes the company difficult to replace, giving it meaningful negotiating power
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 21.2% exceeded its revenue gains over the last five years
- Free cash flow margin expanded by 11.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
HCA Healthcare is trading at $499.45 per share, or 17.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum 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 Comfort Systems (+782% 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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