Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may face some trouble.
One Stock to Sell:
Privia Health (PRVA)
Trailing 12-Month GAAP Operating Margin: 1.6%
Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ: PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.
Why Are We Cautious About PRVA?
- Subscale operations are evident in its revenue base of $2.12 billion, meaning it has fewer distribution channels than its larger rivals
- Push for growth has led to negative returns on capital, signaling value destruction
Privia Health’s stock price of $24.07 implies a valuation ratio of 22.2x forward P/E. Check out our free in-depth research report to learn more about why PRVA doesn’t pass our bar.
Two Stocks to Watch:
Sprouts (SFM)
Trailing 12-Month GAAP Operating Margin: 7.8%
Playing on the secular trend of healthier living, Sprouts Farmers Market (NASDAQ: SFM) is a grocery store chain emphasizing natural and organic products.
Why Does SFM Stand Out?
- Fast expansion of new stores to reach markets with few or no locations is justified by its same-store sales growth
- Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 7.5% over the past two years
- Forecasted revenue growth of 7.9% for the next 12 months indicates its momentum over the last three years is sustainable
Sprouts is trading at $74.38 per share, or 13.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Interface (TILE)
Trailing 12-Month GAAP Operating Margin: 11.8%
Pioneering carbon-neutral flooring since its founding in 1973, Interface (NASDAQ: TILE) is a global manufacturer of modular carpet tiles, luxury vinyl tile (LVT), and rubber flooring that specializes in carbon-neutral and sustainable flooring solutions.
Why Are We Positive On TILE?
- Additional sales over the last two years increased its profitability as the 38.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 3.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Rising returns on capital show management is finding more attractive investment opportunities
At $28.41 per share, Interface trades at 13.4x forward P/E. Is now the time to initiate a position? See for yourself 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 meeting near-term momentum — both boxes checked at the same time.
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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.
