Nasdaq
华尔街日报2 Profitable Stocks with Competitive Advantages and 1 Facing Headwinds
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 balance growth and profitability and one that may struggle to keep up.
One Stock to Sell:
Hain Celestial (HAIN)
Trailing 12-Month GAAP Operating Margin: 3.3%
Sold in over 75 countries around the world, Hain Celestial (NASDAQ:HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.
Why Should You Sell HAIN?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Earnings per share decreased by more than its revenue over the last three years, showing each sale was less profitable
- 6× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings
At $1.17 per share, Hain Celestial trades at 8x forward P/E. If you’re considering HAIN for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Tenet Healthcare (THC)
Trailing 12-Month GAAP Operating Margin: 16.7%
With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE:THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.
Why Does THC Stand Out?
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- ROIC punches in at 22.1%, illustrating management’s expertise in identifying profitable investments, and its returns are climbing as it finds even more attractive growth opportunities
- Improving returns on capital reflect management’s ability to monetize investments
Tenet Healthcare’s stock price of $197.48 implies a valuation ratio of 12.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Capital One (COF)
Trailing 12-Month GAAP Operating Margin: 5.1%
Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE:COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.
Why Are We Positive On COF?
- Annual revenue growth of 15.2% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 44.9% annually, topping its revenue gains
- Adequate return on equity shows management makes decent investment decisions
Capital One is trading at $239.18 per share, or 12x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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 Comfort Systems (+782% 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.