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. That said, here is one profitable company that balances growth and profitability and two that may face some trouble.
Two Stocks to Sell:
BrightView (BV)
Trailing 12-Month GAAP Operating Margin: 4.9%
An official field consultant for Major League Baseball, BrightView (NYSE:BV) offers landscaping design, development, and maintenance.
Why Do We Pass on BV?
- Sales tumbled by 1.7% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share have dipped by 2.5% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Free cash flow margin dropped by 5.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up
BrightView’s stock price of $13.72 implies a valuation ratio of 15.2x forward P/E. Read our free research report to see why you should think twice about including BV in your portfolio.
GE HealthCare (GEHC)
Trailing 12-Month GAAP Operating Margin: 13.8%
Spun off from industrial giant General Electric in 2023 after over a century as its healthcare division, GE HealthCare (NASDAQ:GEHC) provides medical imaging equipment, patient monitoring systems, diagnostic pharmaceuticals, and AI-enabled healthcare solutions to hospitals and clinics worldwide.
Why Are We Hesitant About GEHC?
- Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
- Performance over the past four years shows its incremental sales were much less profitable, as its earnings per share fell by 3.7% annually
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 9.6 percentage points
GE HealthCare is trading at $78.42 per share, or 19.1x forward P/E. Dive into our free research report to see why there are better opportunities than GEHC.
One Stock to Buy:
CECO Environmental (CECO)
Trailing 12-Month GAAP Operating Margin: 15%
With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ:CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.
Why Are We Bullish on CECO?
- Annual revenue growth of 18.6% over the past two years was outstanding, reflecting market share gains this cycle
- Projected revenue growth of 23% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Adjusted operating margin expanded by 11.8 percentage points over the last five years as it scaled and became more efficient
At $45.25 per share, CECO Environmental trades at 35.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
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-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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