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.
Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here is one profitable company that generates reliable profits without sacrificing growth and two that may face some trouble.
Two Stocks to Sell:
Allient (ALNT)
Trailing 12-Month GAAP Operating Margin: 6.6%
Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Why Is ALNT Not Exciting?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 3.5% annually over the last two years
- Issuance of new shares over the last two years caused its earnings per share to fall by 12.6% annually, even worse than its revenue declines
- Low returns on capital reflect management’s struggle to allocate funds effectively, and its shrinking returns suggest its past profit sources are losing steam
Allient is trading at $46.93 per share, or 22.3x forward P/E. Read our free research report to see why you should think twice about including ALNT in your portfolio.
Nasdaq (NDAQ)
Trailing 12-Month GAAP Operating Margin: 42%
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 Do We Think Twice About NDAQ?
- Performance over the past two years shows its incremental sales were less profitable, as its 7.4% annual earnings per share growth trailed its revenue gains
At $94.30 per share, Nasdaq trades at 27.4x forward P/E. To fully understand why you should be careful with NDAQ, check out our full research report (it’s free).
One Stock to Buy:
Chipotle (CMG)
Trailing 12-Month GAAP Operating Margin: 16.6%
Born from a desire to offer quick meals with fresh, flavorful ingredients, Chipotle (NYSE:CMG) is a fast-food chain known for its healthy, Mexican-inspired cuisine and customizable dishes.
Why Is CMG a Top Pick?
- Aggressive strategy of rolling out new restaurants to gobble up whitespace is prudent given its same-store sales growth
- Same-store sales growth over the past two years shows it’s successfully drawing diners into its restaurants
- Unparalleled revenue scale of $11.58 billion gives it advantageous pricing and terms with suppliers
Chipotle’s stock price of $41.40 implies a valuation ratio of 31.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.