While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

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 are two profitable companies that balance growth and profitability and one that may face some trouble.

One Stock to Sell:

Calumet (CLMT)

Trailing 12-Month GAAP Operating Margin: 2.6%

With roots dating back to 1919 and facilities strategically positioned from Louisiana to Montana, Calumet (NASDAQ: CLMT) refines crude oil into specialty products like lubricating oils, solvents, and waxes used in cosmetics, batteries, and industrial applications.

Why Should You Sell CLMT?

1. Flat sales over the last ten years suggest it must find different ways to grow during this cycle
2. Gross margin of 7.8% is below its competitors, leaving less money to invest in exploration and production
3. High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Calumet’s stock price of $33.91 implies a valuation ratio of 12.8x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why CLMT doesn’t pass our bar.

Two Stocks to Watch:

Nasdaq (NDAQ)

Trailing 12-Month GAAP Operating Margin: 44.4%

Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ: NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.

Why Is NDAQ on Our Radar?

1. Impressive 16.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Earnings per share have grown by 11.1% annually over the last five years, slightly higher than the industry average
3. ROE punches in at 15.7%, illustrating management’s expertise in identifying profitable investments

At $84.90 per share, Nasdaq trades at 21.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

CLEAR Secure (YOU)

Trailing 12-Month GAAP Operating Margin: 20.7%

Recognized by its signature blue lanes and biometric pods at airport checkpoints across America, CLEAR Secure (NYSE: YOU) provides biometric identity verification technology that allows subscribers to bypass regular security lines at airports and access secure experiences at various venues.

Why Should You Buy YOU?

1. Impressive 21.2% annual revenue growth over the last two years indicates it’s winning market share
2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
3. Robust free cash flow margin of 38.1% gives it many options for capital deployment

CLEAR Secure is trading at $47.78 per share, or 4.6x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth 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.

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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.