2 Profitable Stocks for Long-Term Investors and 1 We Brush Off
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one best left off your watchlist.
One Stock to Sell:
Paramount (PSKY)
Trailing 12-Month GAAP Operating Margin: 3.4%
Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ:PSKY) is a major media conglomerate offering television, film production, and digital content across various global platforms.
Why Do We Avoid PSKY?
- The company has faced growth challenges as its 2.1% annual revenue increases over the last five years fell short of other consumer discretionary companies
- Free cash flow margin is forecasted to shrink by 2.3 percentage points in the coming year, suggesting the company will consume more capital to keep up with its competitors
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Paramount is trading at $8.55 per share, or 11.2x forward P/E. Dive into our free research report to see why there are better opportunities than PSKY.
Two Stocks to Watch:
Sterling (STRL)
Trailing 12-Month GAAP Operating Margin: 17.2%
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ:STRL) provides civil infrastructure construction.
Why Should You Buy STRL?
- Annual revenue growth of 19.8% over the past two years was outstanding, reflecting market share gains this cycle
- Strong free cash flow margin of 15.6% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute
- Rising returns on capital show management is finding more attractive investment opportunities
At $698.20 per share, Sterling trades at 32.9x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Standex (SXI)
Trailing 12-Month GAAP Operating Margin: 17%
Holding over 500 patents globally, Standex (NYSE:SXI) is a manufacturer and distributor of industrial components for various sectors.
Why Does SXI Catch Our Eye?
- Solid 10.2% annual revenue growth over the last two years indicates its offerings solve complex business issues
- Healthy operating margin of 15.2% shows it’s a well-run company with efficient processes, and its rise over the last five years was fueled by some leverage on its fixed costs
- Share buybacks catapulted its annual earnings per share growth to 17.3%, which outperformed its revenue gains over the last five years
Standex’s stock price of $307.15 implies a valuation ratio of 31.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.