3 Profitable Stocks Worth Your Attention
Profitability is a key measure of business strength. Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.
Even among profitable businesses, only a select few truly maximize their potential - and StockStory is here to help you find them. That said, here are three profitable companies that balance growth and profitability.
DoorDash (DASH)
Trailing 12-Month GAAP Operating Margin: 4.5%
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ:DASH) operates an on-demand food delivery platform.
What Makes DASH Stand Out?
- Orders are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features
- Highly efficient business model is illustrated by its impressive 20% EBITDA margin, and its rise over the last few years was fueled by some leverage on its fixed costs
- Incremental sales over the last three years have been highly profitable as its earnings per share increased by 98.3% annually, topping its revenue gains
DoorDash’s stock price of $196.84 implies a valuation ratio of 19.9x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
e.l.f. Beauty (ELF)
Trailing 12-Month GAAP Operating Margin: 7.2%
Short for "eyes, lips, face", e.l.f. Beauty (NYSE:ELF) is a developer of high-quality beauty products at accessible price points.
Why Do We Watch ELF?
- Impressive 37.9% annual revenue growth over the last three years indicates it’s winning market share
- Differentiated product offerings are difficult to replicate at scale and result in a best-in-class gross margin of 71.2%
- Free cash flow margin increased by 5.8 percentage points over the last year, giving the company more capital to invest or return to shareholders
e.l.f. Beauty is trading at $93.51 per share, or 31.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Tenet Healthcare (THC)
Trailing 12-Month GAAP Operating Margin: 20.8%
With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE:THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services.
Why Are We Positive on THC?
- Share buybacks catapulted its annual earnings per share growth to 18.6%, which outperformed its revenue gains over the last five years
- Free cash flow margin expanded by 11.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are growing as management capitalizes on its market opportunities
At $263.94 per share, Tenet Healthcare trades at 12.5x forward P/E. Is now a good time to buy? See for yourself in our comprehensive 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 (+1,460% 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.