2 Profitable Stocks to Own for Decades and 1 We Question
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. That said, here are two profitable companies that generate reliable profits without sacrificing growth and one that may struggle to keep up.
One Stock to Sell:
G-III (GIII)
Trailing 12-Month GAAP Operating Margin: 6.3%
Founded as a small leather goods business, G-III (NASDAQ:GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.
Why Do We Think GIII Will Underperform?
- Sales trends were unexciting over the last five years as its 3.9% annual growth was below the typical consumer discretionary company
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 4.2% annually
- Low free cash flow margin of 10.5% for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders
G-III is trading at $27.12 per share, or 0.4x forward price-to-sales. Check out our free in-depth research report to learn more about why GIII doesn’t pass our bar.
Two Stocks to Buy:
Curtiss-Wright (CW)
Trailing 12-Month GAAP Operating Margin: 18.8%
Formed from a merger of 12 companies, Curtiss-Wright (NYSE:CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Why Is CW a Good Business?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 10.2% annual sales growth over the last two years
- Share buybacks catapulted its annual earnings per share growth to 17.9%, which outperformed its revenue gains over the last two years
- Free cash flow margin grew by 9 percentage points over the last five years, giving the company more chips to play with
At $547.24 per share, Curtiss-Wright trades at 33.3x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Chord Energy (CHRD)
Trailing 12-Month GAAP Operating Margin: 19%
Holding the largest acreage position in the Williston Basin, Chord Energy (NASDAQ:CHRD) drills for and produces crude oil, natural gas liquids, and natural gas in North Dakota's Williston Basin.
Why Do We Love CHRD?
- Annual revenue growth of 24.8% over the past ten years was outstanding, reflecting market share gains this cycle
- Economies of scale gives it negotiating power with suppliers and fixed cost leverage when sales grow
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Chord Energy’s stock price of $134.05 implies a valuation ratio of 7.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.