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.

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 balance growth and profitability and one best left off your watchlist.

One Stock to Sell:

LiveRamp (RAMP)

Trailing 12-Month GAAP Operating Margin: 7.1%

Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE: RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.

Why Are We Hesitant About RAMP?

1. Underwhelming ARR growth of 6.8% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
2. Below-average net revenue retention rate of 104% suggests it has some trouble expanding within existing accounts
3. Estimated sales growth of 9.1% for the next 12 months implies demand will slow from its two-year trend

LiveRamp’s stock price of $26.73 implies a valuation ratio of 2x forward price-to-sales. If you’re considering RAMP for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

NetApp (NTAP)

Trailing 12-Month GAAP Operating Margin: 22.2%

Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.

Why Are We Fans of NTAP?

1. Billings growth has averaged 7.6% over the past two years, indicating a healthy pipeline of new contracts that should drive future revenue increases
2. Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute

NetApp is trading at $100.16 per share, or 12x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Jack Henry (JKHY)

Trailing 12-Month GAAP Operating Margin: 26.4%

Founded in 1976 by two entrepreneurs who saw the need for specialized banking software in the early days of financial computing, Jack Henry & Associates (NASDAQ: JKHY) provides technology solutions that help banks and credit unions innovate, differentiate, and compete while serving the evolving needs of their accountholders.

Why Do We Love JKHY?

1. Decent 7.6% annual revenue growth over the last five years beat most of its peers, showing customers find value in its products and services
2. Performance over the past two years shows its incremental sales were more profitable, as its annual earnings per share growth of 16.8% outpaced its revenue gains
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $160.50 per share, Jack Henry trades at 24.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

Find out which 5 stocks it's flagging for this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.

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.