Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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

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 face some trouble.

Two Stocks to Sell:

CBRE (CBRE)

Trailing 12-Month GAAP Operating Margin: 4.4%

Established in 1906, CBRE (NYSE: CBRE) is one of the largest commercial real estate services firms in the world.

Why Are We Out on CBRE?

1. Annual sales growth of 10.3% over the last five years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
2. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

CBRE’s stock price of $152.68 implies a valuation ratio of 21.7x forward P/E. Read our free research report to see why you should think twice about including CBRE in your portfolio.

Illinois Tool Works (ITW)

Trailing 12-Month GAAP Operating Margin: 26.2%

Founded by Byron Smith, an investor who held over 100 patents, Illinois Tool Works (NYSE: ITW) manufactures engineered components and specialized equipment for numerous industries.

Why Is ITW Not Exciting?

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. Projected sales growth of 3.3% for the next 12 months suggests sluggish demand
3. Flat earnings per share over the last two years lagged its peers

Illinois Tool Works is trading at $241.34 per share, or 22x forward P/E. Check out our free in-depth research report to learn more about why ITW doesn’t pass our bar.

One Stock to Watch:

McDonald's (MCD)

Trailing 12-Month GAAP Operating Margin: 46.1%

With nicknames spanning Mickey D's in the U.S. to Makku in Japan, McDonald’s (NYSE: MCD) is a fast-food behemoth known for its convenience and broken ice cream machines.

Why Is MCD on Our Radar?

1. Aggressive expansion of new stores reflects an offensive push to quickly grow and sell in markets where it has few or no locations
2. Attractive franchise model leads to wonderful unit economics and a best-in-class gross margin of 57%
3. Strong free cash flow margin of 26.7% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety

At $304.66 per share, McDonald's trades at 23.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 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-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

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