Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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

DoubleVerify (DV)

Trailing 12-Month GAAP Operating Margin: 10.6%

Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE: DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.

Why Do We Think Twice About DV?

1. Sales trends were unexciting over the last two years as its 14.3% annual growth was below the typical software company
2. Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low
3. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 2 percentage points

DoubleVerify’s stock price of $9.32 implies a valuation ratio of 2x forward price-to-sales. Check out our free in-depth research report to learn more about why DV doesn’t pass our bar.

Zumiez (ZUMZ)

Trailing 12-Month GAAP Operating Margin: 1.8%

With store associates called “Zumiez Stash Members”, Zumiez (NASDAQ: ZUMZ) is a specialty retailer of street and skate apparel, footwear, and accessories.

Why Do We Pass on ZUMZ?

1. Store closures demonstrate a defensive approach to eliminating underperforming locations
2. Revenue base of $929.1 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
3. ROIC of 3.1% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up

Zumiez is trading at $21.37 per share, or 23.4x forward P/E. To fully understand why you should be careful with ZUMZ, check out our full research report (it’s free).

One Stock to Buy:

Remitly (RELY)

Trailing 12-Month GAAP Operating Margin: 4.7%

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.

Why Will RELY Outperform?

1. Active Customers have grown by 29.2% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 108% outpaced its revenue gains
3. Free cash flow margin increased by 34.7 percentage points over the last few years, giving the company more capital to invest or return to shareholders

At $14.99 per share, Remitly trades at 8.8x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

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.