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”.
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 are two profitable companies that generate reliable profits without sacrificing growth and one that may struggle to keep up.
One Stock to Sell:
Repligen (RGEN)
Trailing 12-Month GAAP Operating Margin: 8.5%
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Do We Steer Clear of RGEN?
- Revenue base of $763.3 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 18.1 percentage points
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Repligen is trading at $132.29 per share, or 63.5x forward P/E. To fully understand why you should be careful with RGEN, check out our full research report (it’s free).
Two Stocks to Watch:
Altria (MO)
Trailing 12-Month GAAP Operating Margin: 54.3%
Best known for its Marlboro brand of cigarettes, Altria (NYSE: MO) offers tobacco and nicotine products.
Why Do We Like MO?
- Unique products and pricing power are reflected in its best-in-class gross margin of 87.7%
- Disciplined cost controls and effective management resulted in a strong two-year operating margin of 52.7%, and its profitability increased over the last year as it eliminated unnecessary expenses
- Robust free cash flow margin of 42% gives it many options for capital deployment
Altria’s stock price of $69.21 implies a valuation ratio of 12x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
Ameriprise Financial (AMP)
Trailing 12-Month GAAP Operating Margin: 37.6%
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE: AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
Why Will AMP Beat the Market?
- Share repurchases over the last five years enabled its annual earnings per share growth of 23.9% to outpace its revenue gains
- Annual tangible book value per share growth of 18.7% over the past two years was outstanding, reflecting strong capital accumulation this cycle
- Industry-leading 63.7% return on equity demonstrates management’s skill in finding high-return investments
At $467.48 per share, Ameriprise Financial trades at 10.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
