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. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one best left off your watchlist.
One Stock to Sell:
EnerSys (ENS)
Trailing 12-Month GAAP Operating Margin: 11.4%
Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE: ENS) manufactures various kinds of batteries for a range of industries.
Why Are We Cautious About ENS?
- Flat unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Anticipated sales growth of 4.1% for the next year implies demand will be shaky
- Gross margin of 26.6% reflects its high production costs
At $189.44 per share, EnerSys trades at 15.5x forward P/E. Dive into our free research report to see why there are better opportunities than ENS.
Two Stocks to Watch:
Netflix (NFLX)
Trailing 12-Month GAAP Operating Margin: 29.7%
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
Why Is NFLX a Good Business?
- Global Streaming Paid Memberships have grown by 15.1% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 31.2%, and its rise over the last few years was fueled by some leverage on its fixed costs
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 50% exceeded its revenue gains over the last three years
Netflix’s stock price of $73.12 implies a valuation ratio of 16.8x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Crane (CR)
Trailing 12-Month GAAP Operating Margin: 17.9%
Based in Connecticut, Crane (NYSE: CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Why Is CR Interesting?
- Operating margin increased by 5.3 percentage points over the last five years as it refined its cost structure
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 21.9% over the last two years outstripped its revenue performance
- Free cash flow margin increased by 5.4 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Crane is trading at $219.31 per share, or 29.2x forward P/E. Is now the right time to buy? 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.
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 (+1,460% 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.
