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华尔街日报3 Profitable Stocks for Long-Term Investors
Profitability is a key measure of business strength. Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.
Even among profitable businesses, only a select few truly maximize their potential - and StockStory is here to help you find them. Keeping that in mind, here are three profitable companies that leverage their financial strength to beat the competition.
Hims & Hers Health (HIMS)
Trailing 12-Month GAAP Operating Margin: 5.2%
Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.
Why Should HIMS Be on Your Watchlist?
- Customer trends over the past two years show it’s maintaining a steady flow of new contracts that can potentially increase in value over time
- Free cash flow margin increased by 21.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Historical investments are beginning to pay off as its returns on capital are growing
Hims & Hers Health’s stock price of $34.80 implies a valuation ratio of 34.3x 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.
Instacart (CART)
Trailing 12-Month GAAP Operating Margin: 15.3%
Powering more than one billion grocery orders since its founding, Instacart (NASDAQ:CART) is an online grocery shopping and delivery platform that partners with retailers to help customers shop from local stores through its app or website.
Why Should You Buy CART?
- Platform and reputation resonate with consumers, as seen in its above-market 17% annual sales growth over the last three years
- Highly efficient business model is illustrated by its impressive 27% EBITDA margin, and its rise over the last few years was fueled by some leverage on its fixed costs
- Free cash flow margin expanded by 16.8 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
At $45.04 per share, Instacart trades at 9.4x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Magnite (MGNI)
Trailing 12-Month GAAP Operating Margin: 12.2%
Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.
Why Are We Backing MGNI?
- Impressive 30.2% annual revenue growth over the last five years indicates it’s winning market share this cycle
- MGNI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety
- Improving returns on capital suggest its past investments are beginning to deliver value
Magnite is trading at $16.50 per share, or 16.8x 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 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-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.