Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. Keeping that in mind, here is one profitable company that leverages its financial strength to beat the competition and two that may struggle to keep up.
Two Stocks to Sell:
MYR Group (MYRG)
Trailing 12-Month GAAP Operating Margin: 1.9%
Constructing electrical and phone lines in the American Midwest dating back to the 1890s, MYR Group (NASDAQ: MYRG) is a specialty contractor in the electrical construction industry.
Why Are We Out on MYRG?
- Flat backlog over the past two years has disappointed and shows fewer customers signed long-term contracts
- Earnings per share fell by 1.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Eroding returns on capital suggest its historical profit centers are aging
MYR Group is trading at $157.41 per share, or 25.1x forward P/E. Check out our free in-depth research report to learn more about why MYRG doesn’t pass our bar.
Crane NXT (CXT)
Trailing 12-Month GAAP Operating Margin: 16.7%
Born from a corporate transformation completed in 2023, Crane NXT (NYSE: CXT) provides specialized technology solutions for payment processing, banknote security, and authentication systems for financial institutions and businesses.
Why Is CXT Not Exciting?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Smaller revenue base of $1.50 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Earnings per share have contracted by 2.2% annually over the last one years, a headwind for returns as stock prices often echo long-term EPS performance
At $51.99 per share, Crane NXT trades at 11.8x forward P/E. To fully understand why you should be careful with CXT, check out our full research report (it’s free).
One Stock to Buy:
Monster (MNST)
Trailing 12-Month GAAP Operating Margin: 26.3%
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Do We Love MNST?
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 27.3%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy
- ROIC punches in at 38.1%, illustrating management’s expertise in identifying profitable investments
Monster’s stock price of $63.31 implies a valuation ratio of 33.7x 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
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.
