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 balances growth and profitability and two that may struggle to keep up.

Two Stocks to Sell:

MRC Global (MRC)

Trailing 12-Month GAAP Operating Margin: 3.8%

Producing bomb casings and tracks for vehicles during WWII, MRC (NYSE: MRC) offers pipes, valves, and fitting products for various industries.

Why Do We Think MRC Will Underperform?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.9% annually over the last five years
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $13.11 per share, MRC Global trades at 11.1x forward P/E. If you’re considering MRC for your portfolio, see our FREE research report to learn more.

Verisk (VRSK)

Trailing 12-Month GAAP Operating Margin: 43.6%

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ: VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Why Does VRSK Fall Short?

1. Muted 1.9% annual revenue growth over the last five years shows its demand lagged behind its business services peers
2. Earnings per share lagged its peers over the last two years as they only grew by 8.7% annually

Verisk is trading at $302.98 per share, or 42x forward P/E. To fully understand why you should be careful with VRSK, check out our full research report (it’s free).

One Stock to Watch:

Primoris (PRIM)

Trailing 12-Month GAAP Operating Margin: 5.2%

Listed on the NASDAQ in 2008, Primoris (NYSE: PRIM) builds, maintains, and upgrades infrastructure in the utility, energy, and civil construction industries.

Why Are We Fans of PRIM?

1. Market share has increased this cycle as its 16.2% annual revenue growth over the last two years was exceptional
2. Average backlog growth of 148% over the past two years shows it has a steady sales pipeline that will drive future orders
3. Earnings per share grew by 27% annually over the last two years and trumped its peers

Primoris’s stock price of $86.95 implies a valuation ratio of 18.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our 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 Tecnoglass (+1,754% 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.