Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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

A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. Keeping that in mind, here is one profitable company that generates reliable profits without sacrificing growth and two best left off your watchlist.

Two Stocks to Sell:

AMETEK (AME)

Trailing 12-Month GAAP Operating Margin: 26.2%

Started from its humble beginnings in motor repair, AMETEK (NYSE: AME) manufactures electronic devices used in industries like aerospace, power, and healthcare.

Why Does AME Worry Us?

1. Muted 5.1% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

At $199.22 per share, AMETEK trades at 25.3x forward P/E. Check out our free in-depth research report to learn more about why AME doesn’t pass our bar.

WESCO (WCC)

Trailing 12-Month GAAP Operating Margin: 5.3%

Based in Pittsburgh, WESCO (NYSE: WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.

Why Does WCC Fall Short?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
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. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

WESCO is trading at $270.57 per share, or 16.9x forward P/E. Read our free research report to see why you should think twice about including WCC in your portfolio.

One Stock to Buy:

MercadoLibre (MELI)

Trailing 12-Month GAAP Operating Margin: 12%

Originally started as an online auction platform, MercadoLibre (NASDAQ: MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.

Why Is MELI a Top Pick?

1. Has the opportunity to boost monetization through new features and premium offerings as its unique active buyers have grown by 21.7% annually over the last two years
2. Grip over its ecosystem is highlighted by its ability to grow engagement while increasing the average revenue per user by 13.9% annually
3. Robust free cash flow margin of 32.7% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

MercadoLibre’s stock price of $2,117 implies a valuation ratio of 21.8x forward EV/EBITDA. Is now the time to initiate a position? 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 5 Growth Stocks for this month. 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 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

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