Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. Keeping that in mind, here are two profitable companies that leverage their financial strength to beat the competition and one that may struggle to keep up.
One Stock to Sell:
Mission Produce (AVO)
Trailing 12-Month GAAP Operating Margin: 4.7%
Founded in 1983 in California, Mission Produce (NASDAQ: AVO) grows, packages, and distributes avocados.
Why Is AVO Risky?
- Modest revenue base of $1.39 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Estimated sales decline of 12.3% for the next 12 months implies a challenging demand environment
- Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 11.9%
Mission Produce is trading at $11.75 per share, or 15.9x forward P/E. If you’re considering AVO for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Woodward (WWD)
Trailing 12-Month GAAP Operating Margin: 13.4%
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ: WWD) designs, services, and manufactures energy control products and optimization solutions.
Why Do We Watch WWD?
- Average organic revenue growth of 11.1% over the past two years demonstrates its ability to expand independently without relying on acquisitions
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings per share grew by 38.1% annually over the last two years, massively outpacing its peers
At $302.13 per share, Woodward trades at 37.7x 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 .
Jack Henry (JKHY)
Trailing 12-Month GAAP Operating Margin: 25.3%
Founded in 1976 by two entrepreneurs who saw the need for specialized banking software in the early days of financial computing, Jack Henry & Associates (NASDAQ: JKHY) provides technology solutions that help banks and credit unions innovate, differentiate, and compete while serving the evolving needs of their accountholders.
Why Should JKHY Be on Your Watchlist?
- Performance over the past two years shows its incremental sales were more profitable, as its annual earnings per share growth of 15.3% outpaced its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
Jack Henry’s stock price of $182.47 implies a valuation ratio of 29.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.
