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 best left off your watchlist.

One Stock to Sell:

THOR Industries (THO)

Trailing 12-Month GAAP Operating Margin: 3.3%

Created through the acquisition and merger of various RV manufacturers, THOR Industries manufactures and sells a range of recreational vehicles, including motorhomes and travel trailers, catering to consumers seeking the freedom and comfort of the RV lifestyle.

Why Do We Pass on THO?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.2% annually over the last two years
2. Earnings per share fell by 4.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
3. Waning returns on capital imply its previous profit engines are losing steam

THOR Industries’s stock price of $79.13 implies a valuation ratio of 17.1x forward P/E. Check out our free in-depth research report to learn more about why THO doesn’t pass our bar.

Two Stocks to Buy:

Airbnb (ABNB)

Trailing 12-Month GAAP Operating Margin: 20.8%

Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.

Why Are We Bullish on ABNB?

1. Nights and Experiences Booked are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
2. Highly efficient business model is illustrated by its impressive 35.7% EBITDA margin
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Airbnb is trading at $140.70 per share, or 16x forward EV/EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.

Sterling (STRL)

Trailing 12-Month GAAP Operating Margin: 16.6%

Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.

Why Will STRL Beat the Market?

1. Impressive 12.4% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Strong free cash flow margin of 15.2% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy
3. Returns on capital are growing as management capitalizes on its market opportunities

At $511.89 per share, Sterling trades at 35x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.