3 Profitable Stocks on Our Watchlist
Profitable companies tend to be more resilient, giving them the flexibility to invest and return capital to shareholders. Businesses that consistently generate earnings can better navigate downturns and capitalize on new opportunities.
Not all profitable companies are worth your attention, but we’re here to highlight the ones with the most upside. That said, here are three profitable companies that generate reliable profits without sacrificing growth.
Comfort Systems (FIX)
Trailing 12-Month GAAP Operating Margin: 16.5%
Formed through the merger of 12 companies, Comfort Systems (NYSE:FIX) provides mechanical and electrical contracting services.
Why Is FIX a Top Pick?
- Sales pipeline is in good shape as its backlog averaged 56% growth over the past two years
- Free cash flow margin increased by 15.1 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are climbing as management makes more lucrative bets
Comfort Systems’s stock price of $1,573 implies a valuation ratio of 29.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Blue Bird (BLBD)
Trailing 12-Month GAAP Operating Margin: 11.8%
With around a century of experience, Blue Bird (NASDAQ:BLBD) is a manufacturer of school buses and complementary parts.
Why Do We Love BLBD?
- Average unit sales growth of 9.2% over the past two years reflects steady demand for its products
- Free cash flow margin expanded by 23.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Rising returns on capital show management is finding more attractive investment opportunities
At $61.05 per share, Blue Bird trades at 12.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Globus Medical (GMED)
Trailing 12-Month GAAP Operating Margin: 20.3%
With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE:GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.
Why Are We Fans of GMED?
- Average constant currency growth of 20.7% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
- Earnings per share have massively outperformed its peers over the last five years, increasing by 18.3% annually
- Free cash flow margin expanded by 8 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Globus Medical is trading at $73.90 per share, or 14.7x 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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 Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.