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. Keeping that in mind, here are two profitable companies that leverage their financial strength to beat the competition and one best left off your watchlist.
One Stock to Sell:
Tennant (TNC)
Trailing 12-Month GAAP Operating Margin: 7.3%
As the world’s largest manufacturer of autonomous mobile robots, Tennant (NYSE: TNC) designs, manufactures, and sells cleaning products to various sectors.
Why Do We Pass on TNC?
- Sales stagnated over the last two years and signal the need for new growth strategies
- Anticipated sales growth of 3.7% for the next year implies demand will be shaky
- Earnings per share fell by 4.3% annually over the last two years while its revenue was flat, showing each sale was less profitable
At $81.30 per share, Tennant trades at 12.5x forward P/E. Check out our free in-depth research report to learn more about why TNC doesn’t pass our bar.
Two Stocks to Watch:
Corning (GLW)
Trailing 12-Month GAAP Operating Margin: 13.9%
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Why Do We Watch GLW?
- 9.9% annual revenue growth over the last two years surpassed the sector average as its offerings resonated with customers
- Exciting sales outlook for the upcoming 12 months calls for 14.1% growth, an acceleration from its two-year trend
- Earnings per share grew by 22% annually over the last two years and trumped its peers
Corning is trading at $128.27 per share, or 42.7x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
UnitedHealth (UNH)
Trailing 12-Month GAAP Operating Margin: 4.2%
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Could UNH Be a Winner?
- Decent 11.7% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
- Massive revenue base of $447.6 billion gives it meaningful leverage when negotiating reimbursement rates
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
UnitedHealth’s stock price of $273.15 implies a valuation ratio of 15.4x forward P/E. Is now the time to initiate a position? 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 5 Strong Momentum Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
