Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.

Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. Keeping that in mind, here is one profitable company that balances growth and profitability and two best left off your watchlist.

Two Stocks to Sell:

Mission Produce (AVO)

Trailing 12-Month GAAP Operating Margin: 4.5%

Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.

Why Do We Avoid AVO?

1. Smaller revenue base of $1.39 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
2. Forecasted revenue decline of 15% for the upcoming 12 months implies demand will fall off a cliff
3. Gross margin of 10.9% is an output of its commoditized products

Mission Produce’s stock price of $12.47 implies a valuation ratio of 15.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why AVO doesn’t pass our bar.

Hudson Technologies (HDSN)

Trailing 12-Month GAAP Operating Margin: 8.8%

Founded in 1991, Hudson Technologies (NASDAQ: HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Why Are We Hesitant About HDSN?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 15.5% annually over the last two years
2. Earnings per share have contracted by 51.9% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Hudson Technologies is trading at $8.11 per share, or 10.7x forward EV-to-EBITDA. To fully understand why you should be careful with HDSN, check out our full research report (it’s free).

One Stock to Buy:

H&R Block (HRB)

Trailing 12-Month GAAP Operating Margin: 21.8%

Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE: HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses.

Why Are We Bullish on HRB?

1. Remarkable 30.5% revenue growth over the last five years demonstrates its ability to capture significant market share
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Industry-leading 56.7% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities

At $56.64 per share, H&R Block trades at 16.6x forward EV-to-EBITDA. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 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-micro-cap company Kadant (+351% 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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