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 balance growth and profitability and one best left off your watchlist.

One Stock to Sell:

Travel + Leisure (TNL)

Trailing 12-Month GAAP Operating Margin: 13.7%

Formerly known as Wyndham Destinations, Travel + Leisure (NYSE: TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.

Why Do We Pass on TNL?

1. Performance surrounding its tours conducted has lagged its peers
2. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
3. 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Travel + Leisure’s stock price of $64.44 implies a valuation ratio of 7.8x forward P/E. Dive into our free research report to see why there are better opportunities than TNL.

Two Stocks to Buy:

Plexus (PLXS)

Trailing 12-Month GAAP Operating Margin: 5%

With over 20,000 team members across 26 global facilities, Plexus (NASDAQ: PLXS) designs, manufactures, and services complex electronic products for companies in aerospace/defense, healthcare, and industrial sectors.

Why Should You Buy PLXS?

1. Solid 8.1% annual revenue growth over the last two years indicates its offerings solve complex business issues
2. Exciting sales outlook for the upcoming 12 months calls for 20.6% growth, an acceleration from its two-year trend
3. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Plexus is trading at $242.34 per share, or 23.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Viper Energy (VNOM)

Trailing 12-Month GAAP Operating Margin: 12.3%

Operating a business model that requires no drilling rigs or production equipment of its own, Viper Energy (NASDAQ: VNOM) owns mineral and royalty interests in oil and gas properties, collecting revenue when operators extract resources from land.

Why Is VNOM a Top Pick?

1. Annual revenue growth of 40.1% over the last ten years was superb and indicates its market share increased during this cycle
2. Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 100%
3. EBITDA profits and efficiency rose over the last five years as it benefited from some fixed cost leverage

At $44.28 per share, Viper Energy trades at 17.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

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-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.