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".
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may struggle to keep up.
One Stock to Sell:
Verisk (VRSK)
Trailing 12-Month GAAP Operating Margin: 44.4%
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Are We Wary of VRSK?
- Sales trends were unexciting over the last five years as its 2% annual growth was below the typical business services company
- Earnings per share lagged its peers over the last five years as they only grew by 7.2% annually
Verisk’s stock price of $218.59 implies a valuation ratio of 30.2x forward P/E. If you’re considering VRSK for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Dycom (DY)
Trailing 12-Month GAAP Operating Margin: 8.3%
Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure.
Why Will DY Beat the Market?
- Market share has increased this cycle as its 11.8% annual revenue growth over the last two years was exceptional
- Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
At $348.98 per share, Dycom trades at 28.9x 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.
CACI (CACI)
Trailing 12-Month GAAP Operating Margin: 9%
Founded to commercialize SIMSCRIPT, CACI International (NYSE:CACI) offers defense, intelligence, and IT solutions to support national security and government transformation efforts.
Why Does CACI Stand Out?
- Backlog has averaged 11.3% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Average operating margin of 8.6% reduces the likelihood of a crisis
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 20.6% exceeded its revenue gains over the last two years
CACI is trading at $593.87 per share, or 20.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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