Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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 are two profitable companies that balance growth and profitability and one best left off your watchlist.
One Stock to Sell:
MarketAxess (MKTX)
Trailing 12-Month GAAP Operating Margin: 41.6%
Pioneering the shift from phone-based to electronic bond trading since 2000, MarketAxess (NASDAQ: MKTX) operates electronic trading platforms that enable institutional investors and broker-dealers to efficiently trade fixed-income securities like corporate and government bonds.
Why Are We Cautious About MKTX?
- 6.4% annual revenue growth over the last five years was slower than its financials peers
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
At $163.49 per share, MarketAxess trades at 21.5x forward P/E. If you’re considering MKTX for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
BellRing Brands (BRBR)
Trailing 12-Month GAAP Operating Margin: 16.5%
Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.
Why Is BRBR a Top Pick?
- Products are flying off the shelves as its unit sales averaged 20.1% growth over the past two years
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures
BellRing Brands’s stock price of $31.59 implies a valuation ratio of 14.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
W. R. Berkley (WRB)
Trailing 12-Month GAAP Operating Margin: 16.6%
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
Why Do We Love WRB?
- Net premiums earned surged by 12.6% annually over the past five years, reflecting strong market share gains this cycle
- Share buybacks catapulted its annual earnings per share growth to 35.5%, which outperformed its revenue gains over the last five years
- Exciting book value per share outlook for the upcoming 12 months calls for 26.6% growth, an acceleration from its two-year trend
W. R. Berkley is trading at $72.62 per share, or 2.8x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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-micro-cap company Kadant (+351% 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
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