Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here is one profitable company that generates reliable profits without sacrificing growth and two that may face some trouble.
Two Stocks to Sell:
Leggett & Platt (LEG)
Trailing 12-Month GAAP Operating Margin: 8.8%
Founded in 1883, Leggett & Platt (NYSE: LEG) is a diversified manufacturer of products and components for various industries.
Why Is LEG Risky?
- Products and services have few die-hard fans as sales have declined by 1.1% annually over the last five years
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6% for the last two years
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $11.42 per share, Leggett & Platt trades at 10.6x forward P/E. Read our free research report to see why you should think twice about including LEG in your portfolio.
Clean Harbors (CLH)
Trailing 12-Month GAAP Operating Margin: 11.2%
Established in 1980, Clean Harbors (NYSE: CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups.
Why Are We Hesitant About CLH?
- Muted 5.6% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Estimated sales growth of 3.3% for the next 12 months implies demand will slow from its two-year trend
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 2.8% annually
Clean Harbors is trading at $286.24 per share, or 34.6x forward P/E. Check out our free in-depth research report to learn more about why CLH doesn’t pass our bar.
One Stock to Watch:
Lazard (LAZ)
Trailing 12-Month GAAP Operating Margin: 10.8%
Tracing its roots back to 1848 when it began as a dry goods merchant in New Orleans, Lazard (NYSE: LAZ) is a global financial advisory and asset management firm that provides strategic advice to corporations, governments, institutions, and wealthy individuals.
Why Could LAZ Be a Winner?
- Industry-leading 25.7% return on equity demonstrates management’s skill in finding high-return investments
Lazard’s stock price of $51.73 implies a valuation ratio of 13.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
