Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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 are two profitable companies that generate reliable profits without sacrificing growth and one that may face some trouble.
One Stock to Sell:
Concrete Pumping (BBCP)
Trailing 12-Month GAAP Operating Margin: 11.3%
Going public via SPAC in 2018, Concrete Pumping (NASDAQ: BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.
Why Does BBCP Fall Short?
- Sales tumbled by 4.1% annually over the last two years, showing market trends are working against it during this cycle
- Earnings per share have contracted by 33.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Underwhelming 6.6% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $9.43 per share, Concrete Pumping trades at 42.4x forward P/E. Check out our free in-depth research report to learn more about why BBCP doesn’t pass our bar.
Two Stocks to Buy:
AppLovin (APP)
Trailing 12-Month GAAP Operating Margin: 77.4%
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ: APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
Why Will APP Outperform?
- Market share has increased as its 31.4% annual revenue growth over the last two years was exceptional
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
AppLovin is trading at $305.45 per share, or 11.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
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?
- 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
- Excellent EBITDA margin of 35.6% highlights the efficiency of its business model, and it turbocharged its profits by achieving some fixed cost leverage
- Robust free cash flow margin of 36.8% gives it many options for capital deployment
At $179.96 per share, Airbnb trades at 19x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
