Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.
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 balance growth and profitability and one that may face some trouble.
One Stock to Sell:
Lindsay (LNN)
Trailing 12-Month GAAP Operating Margin: 13.3%
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE: LNN) provides a variety of proprietary water management and road infrastructure products and services.
Why Do We Think Twice About LNN?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Projected sales for the next 12 months are flat and suggest demand will be subdued
- Earnings per share have dipped by 1.1% annually over the past two years, which is concerning because stock prices follow EPS over the long term
Lindsay is trading at $135.13 per share, or 21.9x forward P/E. If you’re considering LNN for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Tecnoglass (TGLS)
Trailing 12-Month GAAP Operating Margin: 26.7%
The first-ever Colombian company to trade on the NASDAQ, Tecnoglass (NYSE: TGLS) is a manufacturer of architectural glass, windows, and aluminum products.
Why Do We Like TGLS?
- Annual revenue growth of 17.5% over the past five years was outstanding, reflecting market share gains this cycle
- Highly efficient business model is illustrated by its impressive 27.3% operating margin, and its operating leverage amplified its profits over the last five years
- Earnings per share grew by 43.6% annually over the last five years and trumped its peers
Tecnoglass’s stock price of $77.24 implies a valuation ratio of 18.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Tetra Tech (TTEK)
Trailing 12-Month GAAP Operating Margin: 7.3%
With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ: TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide.
Why Does TTEK Stand Out?
- Market share has increased this cycle as its 20% annual revenue growth over the last two years was exceptional
- Sales pipeline is in good shape as its backlog averaged 15.6% growth over the past two years
- Revenue base of $4.56 billion gives it economies of scale and some distribution advantages
At $35.98 per share, Tetra Tech trades at 24.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
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