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 are two profitable companies that generate reliable profits without sacrificing growth and one that may face some trouble.
One Stock to Sell:
BJ's (BJRI)
Trailing 12-Month GAAP Operating Margin: 3.3%
Founded in 1978 in California, BJ’s Restaurants (NASDAQ: BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.
Why Is BJRI Risky?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its menu offerings and dining experience
- Lacking pricing power results in an inferior gross margin of 14.9% that must be offset by turning more tables
- Underwhelming 4.5% return on capital reflects management’s difficulties in finding profitable growth opportunities
BJ’s stock price of $34.75 implies a valuation ratio of 15.8x forward P/E. Dive into our free research report to see why there are better opportunities than BJRI.
Two Stocks to Buy:
SoFi (SOFI)
Trailing 12-Month GAAP Operating Margin: 14.6%
Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.
Why Do We Love SOFI?
- Annual revenue growth of 31.6% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 148% annual growth in its earnings per share outpaced its revenue
SoFi is trading at $15.04 per share, or 26.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Fair Isaac Corporation (FICO)
Trailing 12-Month GAAP Operating Margin: 47.5%
Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation (NYSE: FICO) develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.
Why Are We Backing FICO?
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 24.6% exceeded its revenue gains over the last two years
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- Improving returns on capital reflect management’s ability to monetize investments
At $1,006 per share, Fair Isaac Corporation trades at 23.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
