Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.

Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. Keeping that in mind, here are two profitable companies that leverage their financial strength to beat the competition and one that may struggle to keep up.

One Stock to Sell:

Expeditors (EXPD)

Trailing 12-Month GAAP Operating Margin: 9.8%

Expeditors (NYSE: EXPD) offers air and ocean freight as well as brokerage services.

Why Are We Wary of EXPD?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 13.5%
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

At $186.47 per share, Expeditors trades at 24.2x forward P/E. Check out our free in-depth research report to learn more about why EXPD doesn’t pass our bar.

Two Stocks to Buy:

Wabtec (WAB)

Trailing 12-Month GAAP Operating Margin: 16.4%

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE: WAB) provides equipment, systems, and related software for the railway industry.

Why Will WAB Beat the Market?

1. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
2. Share buybacks catapulted its annual earnings per share growth to 18.1%, which outperformed its revenue gains over the last two years
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute

Wabtec’s stock price of $291.27 implies a valuation ratio of 25.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Euronet Worldwide (EEFT)

Trailing 12-Month GAAP Operating Margin: 11.5%

Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide (NASDAQ: EEFT) provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.

Why Should You Buy EEFT?

1. Annual revenue growth of 9.8% over the last five years was above the sector average and underscores its products and services value to customers
2. Share buybacks catapulted its annual earnings per share growth to 28.3%, which outperformed its revenue gains over the last five years
3. Industry-leading 21.1% return on equity demonstrates management’s skill in finding high-return investments

Euronet Worldwide is trading at $68.74 per share, or 6.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.