Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. That said, here is one profitable company that leverages its financial strength to beat the competition and two that may face some trouble.
Two Stocks to Sell:
Deere (DE)
Trailing 12-Month GAAP Operating Margin: 14.8%
Revolutionizing agriculture with the first self-polishing cast-steel plow in the 1800s, Deere (NYSE: DE) manufactures and distributes advanced agricultural, construction, forestry, and turf care equipment.
Why Do We Think DE Will Underperform?
- Annual sales declines of 14.5% for the past two years show its products and services struggled to connect with the market during this cycle
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
- High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate
At $489.75 per share, Deere trades at 29.4x forward P/E. Check out our free in-depth research report to learn more about why DE doesn’t pass our bar.
Artivion (AORT)
Trailing 12-Month GAAP Operating Margin: 6.1%
Formerly known as CryoLife until its 2022 rebranding, Artivion (NYSE: AORT) develops and manufactures medical devices and preserves human tissues used in cardiac and vascular surgical procedures for patients with aortic disease.
Why Does AORT Fall Short?
- Subscale operations are evident in its revenue base of $422.6 million, meaning it has fewer distribution channels than its larger rivals
- Low free cash flow margin of 0.1% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
- Underwhelming 2.3% return on capital reflects management’s difficulties in finding profitable growth opportunities
Artivion’s stock price of $42.87 implies a valuation ratio of 58.5x forward P/E. Read our free research report to see why you should think twice about including AORT in your portfolio.
One Stock to Buy:
Raymond James (RJF)
Trailing 12-Month GAAP Operating Margin: 19.7%
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Why Is RJF a Good Business?
- 12% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
- Share buybacks propelled its annual earnings per share growth to 21.2%, which outperformed its revenue gains over the last five years
- Impressive 14.4% annual tangible book value per share growth over the last two years indicates it’s building equity value this cycle
Raymond James is trading at $170.64 per share, or 14x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
