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.
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 generate reliable profits without sacrificing growth and one that may struggle to keep up.
One Stock to Sell:
Vulcan Materials (VMC)
Trailing 12-Month GAAP Operating Margin: 20.8%
Founded in 1909, Vulcan Materials (NYSE: VMC) is a producer of construction aggregates, primarily crushed stone, sand, and gravel.
Why Does VMC Give Us Pause?
- Sluggish trends in its tons shipped suggest customers aren’t adopting its solutions as quickly as the company hoped
- Anticipated sales growth of 4% for the next year implies demand will be shaky
- Gross margin of 25.2% reflects its high production costs
At $294.18 per share, Vulcan Materials trades at 31.2x forward P/E. Dive into our free research report to see why there are better opportunities than VMC.
Two Stocks to Watch:
Lam Research (LRCX)
Trailing 12-Month GAAP Operating Margin: 33%
Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ: LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors.
Why Is LRCX a Top Pick?
- Annual revenue growth of 11.2% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin jumped by 9.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
- ROIC punches in at 64.3%, illustrating management’s expertise in identifying profitable investments
Lam Research is trading at $178.18 per share, or 35.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Intuitive Surgical (ISRG)
Trailing 12-Month GAAP Operating Margin: 29.3%
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Should ISRG Be on Your Watchlist?
- Products are seeing elevated demand as its system placement averaged 12.7% growth over the past two years
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 20.9% annually
Intuitive Surgical’s stock price of $578.07 implies a valuation ratio of 62.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
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 Growth Stocks for this month. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
