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 leverages its financial strength to beat the competition and two that may face some trouble.
Two Stocks to Sell:
Genuine Parts (GPC)
Trailing 12-Month GAAP Operating Margin: 3.9%
Largely targeting the professional customer, Genuine Parts (NYSE: GPC) sells auto and industrial parts such as batteries, belts, bearings, and machine fluids.
Why Should You Dump GPC?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.1% over the last three years was below our standards for the consumer retail sector
- Poor same-store sales performance over the past two years indicates it’s having trouble bringing new shoppers into its brick-and-mortar locations
- Operating margin of 4.5% falls short of the industry average, and the smaller profit dollars make it harder to react to unexpected market developments
Genuine Parts is trading at $94.07 per share, or 11.8x forward P/E. Read our free research report to see why you should think twice about including GPC in your portfolio.
E.W. Scripps (SSP)
Trailing 12-Month GAAP Operating Margin: 8.5%
Founded as a chain of daily newspapers, E.W. Scripps (NASDAQ: SSP) is a diversified media enterprise operating a range of local television stations, national networks, and digital media platforms.
Why Is SSP Risky?
- Lackluster 1.6% annual revenue growth over the last five years indicates the company is losing ground to competitors
- Unchanged returns on capital make it difficult for the company’s valuation multiple to re-rate
At $3.60 per share, E.W. Scripps trades at 0.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than SSP.
One Stock to Buy:
DoorDash (DASH)
Trailing 12-Month GAAP Operating Margin: 4.9%
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ: DASH) operates an on-demand food delivery platform.
Why Are We Bullish on DASH?
- Orders are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Notable projected revenue growth of 25.3% for the next 12 months hints at market share gains
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 179% over the last three years outstripped its revenue performance
DoorDash’s stock price of $163.12 implies a valuation ratio of 17.7x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive 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.
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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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
