Nasdaq
华尔街日报1 Profitable Stock to Target This Week and 2 Facing Challenges
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 is one profitable company that balances growth and profitability and two that may face some trouble.
Two Stocks to Sell:
L.B. Foster (FSTR)
Trailing 12-Month GAAP Operating Margin: 3.7%
Founded with a $2,500 loan, L.B. Foster (NASDAQ:FSTR) is a provider of products and services for the transportation and energy infrastructure sectors, including rail products, construction materials, and coating solutions.
Why Do We Think Twice About FSTR?
- Sales stagnated over the last five years and signal the need for new growth strategies
- Performance over the past five years was negatively impacted by new share issuances as its earnings per share fell by 31.4% annually while its revenue was flat
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
At $27.70 per share, L.B. Foster trades at 8.3x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than FSTR.
IQVIA (IQV)
Trailing 12-Month GAAP Operating Margin: 13.7%
Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE:IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.
Why Does IQV Fall Short?
- Sizable revenue base leads to growth challenges as its 3.5% annual revenue increases over the last two years fell short of other healthcare companies
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Free cash flow margin dropped by 3.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up
IQVIA is trading at $241.03 per share, or 18.6x forward P/E. Check out our free in-depth research report to learn more about why IQV doesn’t pass our bar.
One Stock to Buy:
Chipotle (CMG)
Trailing 12-Month GAAP Operating Margin: 16.4%
Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.
Why Is CMG a Good Business?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants
- Massive revenue base of $11.79 billion makes it a household name that influences purchasing decisions
Chipotle’s stock price of $38.73 implies a valuation ratio of 32.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 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.