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.
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 that may struggle to keep up.
One Stock to Sell:
The New York Times (NYT)
Trailing 12-Month GAAP Operating Margin: 16%
Founded in 1851, The New York Times (NYSE: NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Should You Sell NYT?
- Number of subscribers has disappointed over the past two years, indicating weak demand for its offerings
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 3.7 percentage points
- Low returns on capital reflect management’s struggle to allocate funds effectively
The New York Times’s stock price of $65.28 implies a valuation ratio of 21.9x forward P/E. If you’re considering NYT for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Evercore (EVR)
Trailing 12-Month GAAP Operating Margin: 22%
Founded in 1995 as a boutique advisory firm focused on independence and client trust, Evercore (NYSE: EVR) is an independent investment banking firm that provides strategic advisory, capital markets, and wealth management services to corporations, financial sponsors, and high-net-worth individuals.
Why Is EVR a Top Pick?
- Annual revenue growth of 33.9% over the last two years was superb and indicates its market share increased during this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 62% annually, topping its revenue gains
- Market-beating return on equity illustrates that management has a knack for investing in profitable ventures
At $303.18 per share, Evercore trades at 16x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Riley Exploration Permian (REPX)
Trailing 12-Month GAAP Operating Margin: 38.4%
Operating in counties where legacy oil fields have been producing since the early 1900s, Riley Exploration Permian (NYSE: REPX) drills for and produces oil and natural gas from horizontal wells in the Permian Basin of West Texas and New Mexico.
Why Will REPX Beat the Market?
- Impressive 30.8% annual revenue growth over the last eight years indicates it’s winning market share this cycle
- Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 76.4%
- Strong free cash flow margin of 16.1% enables it to reinvest or return capital consistently
Riley Exploration Permian is trading at $37.19 per share, or 4.7x 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 meet 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
