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 face some trouble.
Two Stocks to Sell:
UFP Technologies (UFPT)
Trailing 12-Month GAAP Operating Margin: 16.6%
With expertise dating back to 1963 in specialized materials and precision manufacturing, UFP Technologies (NASDAQ: UFPT) designs and manufactures custom solutions for medical devices, sterile packaging, and other highly engineered products for healthcare and industrial applications.
Why Are We Wary of UFPT?
- Modest revenue base of $588.6 million gives it less fixed cost leverage and fewer distribution channels than larger companies
UFP Technologies is trading at $195.50 per share, or 19.6x forward P/E. Dive into our free research report to see why there are better opportunities than UFPT.
Artisan Partners (APAM)
Trailing 12-Month GAAP Operating Margin: 32.4%
Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE: APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors.
Why Is APAM Not Exciting?
- Sales trends were unexciting over the last five years as its 6.8% annual growth was below the typical financials company
- Incremental sales over the last five years were less profitable as its 5% annual earnings per share growth lagged its revenue gains
Artisan Partners’s stock price of $43.94 implies a valuation ratio of 2.3x forward price-to-sales. If you’re considering APAM for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Intuit (INTU)
Trailing 12-Month GAAP Operating Margin: 26.1%
Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ: INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances.
Why Do We Like INTU?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 17.5% over the last year
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Healthy operating margin of 26.1% shows it’s a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs
At $680.14 per share, Intuit trades at 9.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 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-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
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.
