Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. That said, here is one profitable company that leverages its financial strength to beat the competition and two that may struggle to keep up.
Two Stocks to Sell:
Simpson (SSD)
Trailing 12-Month GAAP Operating Margin: 19%
Aiming to build safer and stronger buildings, Simpson (NYSE: SSD) designs and manufactures structural connectors, anchors, and other construction products.
Why Is SSD Not Exciting?
- 2.7% annual revenue growth over the last two years was slower than its industrials peers
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Eroding returns on capital suggest its historical profit centers are aging
At $209.02 per share, Simpson trades at 23.5x forward P/E. Read our free research report to see why you should think twice about including SSD in your portfolio.
Ameresco (AMRC)
Trailing 12-Month GAAP Operating Margin: 6.8%
Having played a role in upgrading the energy solutions of Alcatraz Island, Ameresco (NYSE: AMRC) provides energy and renewable energy solutions for various sectors.
Why Are We Wary of AMRC?
- Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 16.5%
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Ameresco is trading at $32.69 per share, or 34.5x forward P/E. Check out our free in-depth research report to learn more about why AMRC doesn’t pass our bar.
One Stock to Buy:
Globalstar (GSAT)
Trailing 12-Month GAAP Operating Margin: 4.1%
Known for powering the emergency SOS feature in newer Apple iPhones, Globalstar (NASDAQ: GSAT) operates a network of low-earth orbit satellites that provide voice and data communications services in remote areas where traditional cellular networks don't reach.
Why Should You Buy GSAT?
- Annual revenue growth of 15.6% over the last five years was superb and indicates its market share increased during this cycle
- GSAT is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
Globalstar’s stock price of $59.99 implies a valuation ratio of 535.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
