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.
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. Keeping that in mind, here are two profitable companies that generate reliable profits without sacrificing growth and one best left off your watchlist.
One Industrials Stock to Sell:
Crown Holdings (CCK)
Trailing 12-Month GAAP Operating Margin: 12.6%
Formerly Crown Cork & Seal, Crown Holdings (NYSE: CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.
Why Does CCK Fall Short?
- Constant currency revenue growth has disappointed over the past two years and shows demand was soft
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.1%
- Gross margin of 20.5% reflects its high production costs
Crown Holdings is trading at $95.03 per share, or 12x forward P/E. Read our free research report to see why you should think twice about including CCK in your portfolio.
Two Industrials Stocks to Watch:
Northwest Pipe (NWPX)
Trailing 12-Month GAAP Operating Margin: 9.3%
Playing a large role in the Integrated Pipeline (IPL) project in Texas to deliver ~350 million gallons of water per day, Northwest Pipe (NASDAQ: NWPX) is a manufacturer of pipeline systems for water infrastructure.
Why Could NWPX Be a Winner?
- Market share has increased this cycle as its 12.5% annual revenue growth over the last five years was exceptional
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 19.9% exceeded its revenue gains over the last two years
- Free cash flow margin increased by 13.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Northwest Pipe’s stock price of $56.13 implies a valuation ratio of 15.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Bloom Energy (BE)
Trailing 12-Month GAAP Operating Margin: 4.9%
Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Why Is BE a Good Business?
- Impressive 19.1% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Free cash flow turned positive over the last five years, showing the company is at an important crossroads
- Historical investments are beginning to pay off as its returns on capital are growing
At $105.38 per share, Bloom Energy trades at 132.7x 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 .
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 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-small-cap company Exlservice (+354% 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
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