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”.
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 balance growth and profitability and one that may face some trouble.
One Stock to Sell:
Bristol-Myers Squibb (BMY)
Trailing 12-Month GAAP Operating Margin: 23.8%
With roots dating back to 1887 and a transformative merger in 1989 that gave the company its current name, Bristol-Myers Squibb (NYSE:BMY) discovers, develops, and markets prescription medications for serious diseases including cancer, blood disorders, immunological conditions, and cardiovascular diseases.
Why Does BMY Fall Short?
- Annual sales growth of 2.1% over the last five years lagged behind its healthcare peers as its large revenue base made it difficult to generate incremental demand
- Efficiency has decreased over the last five years as its adjusted operating margin fell by 8.2 percentage points
- Incremental sales over the last five years were less profitable as its earnings per share were flat while its revenue grew
Bristol-Myers Squibb’s stock price of $59.73 implies a valuation ratio of 9.4x forward P/E. To fully understand why you should be careful with BMY, check out our full research report (it’s free).
Two Stocks to Watch:
PTC (PTC)
Trailing 12-Month GAAP Operating Margin: 37.8%
Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ:PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM.
Why Does PTC Stand Out?
- Superior software functionality and low servicing costs are reflected in its top-tier gross margin of 84.5%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Highly efficient business model is illustrated by its impressive 37.8% operating margin, and its profits increased over the last year as it scaled
PTC is trading at $193.15 per share, or 8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
FirstCash (FCFS)
Trailing 12-Month GAAP Operating Margin: 16.4%
Offering a financial lifeline to the unbanked and credit-constrained since 1988, FirstCash (NASDAQ:FCFS) operates pawn stores across the U.S. and Latin America while also providing retail point-of-sale payment solutions for credit-constrained consumers.
Why Does FCFS Catch Our Eye?
- Market share has increased this cycle as its 21.6% annual revenue growth over the last five years was exceptional
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 27.5% over the last five years outstripped its revenue performance
- Industry-leading 13.4% return on equity demonstrates management’s skill in finding high-return investments
At $217.83 per share, FirstCash trades at 17.5x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.