Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. Keeping that in mind, here is one profitable company that leverages its financial strength to beat the competition and two best left off your watchlist.
Two Stocks to Sell:
Hain Celestial (HAIN)
Trailing 12-Month GAAP Operating Margin: 4.7%
Sold in over 75 countries around the world, Hain Celestial (NASDAQ: HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.
Why Do We Steer Clear of HAIN?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Projected sales decline of 5.5% over the next 12 months indicates demand will continue deteriorating
- Sales were less profitable over the last three years as its earnings per share fell by 43.5% annually, worse than its revenue declines
At $1.81 per share, Hain Celestial trades at 4.3x forward P/E. If you’re considering HAIN for your portfolio, see our FREE research report to learn more.
American Airlines (AAL)
Trailing 12-Month GAAP Operating Margin: 3.8%
One of the ‘Big Four’ airlines in the US, American Airlines (NASDAQ: AAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Why Do We Pass on AAL?
- Performance surrounding its revenue passenger miles has lagged its peers
- ROIC of 3.3% reflects management’s challenges in identifying attractive investment opportunities
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
American Airlines’s stock price of $13.13 implies a valuation ratio of 8.8x forward P/E. To fully understand why you should be careful with AAL, check out our full research report (it’s free).
One Stock to Buy:
Payoneer (PAYO)
Trailing 12-Month GAAP Operating Margin: 12.2%
Founded during the early days of global e-commerce in 2005 to solve international payment challenges, Payoneer (NASDAQ: PAYO) provides financial technology services that enable small and medium-sized businesses to send and receive payments globally across borders.
Why Is PAYO a Top Pick?
- Impressive 25.6% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Share buybacks catapulted its annual earnings per share growth to 266%, which outperformed its revenue gains over the last two years
Payoneer is trading at $6.79 per share, or 25.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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