1 Profitable Stock Worth Your Attention and 2 We Find Risky

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies — as Jeff Bezos said, “Your margin is my opportunity”.

Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. That said, here is one profitable company that balances growth and profitability and two that may struggle to keep up.

Two Stocks to Sell:

Republic Services (RSG)

Trailing 12-Month GAAP Operating Margin: 19.9%

Processing several million tons of recyclables annually, Republic (NYSE:RSG) provides waste management services for residences, companies, and municipalities.

Why Are We Wary of RSG?

1. Annual sales growth of 4.7% over the last two years lagged behind its industrials peers as its large revenue base made it difficult to generate incremental demand
2. Flat unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
3. Anticipated sales growth of 4.3% for the next year implies demand will be shaky

At $213.33 per share, Republic Services trades at 28.6x forward P/E. Check out our free in-depth research report to learn more about why RSG doesn’t pass our bar.

Crown Holdings (CCK)

Trailing 12-Month GAAP Operating Margin: 12.2%

Formerly Crown Cork & Seal, Crown Holdings (NYSE:CCK) produces packaging products for consumer marketing companies, including food, beverage, household, and industrial products.

Why Is CCK Not Exciting?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 1.4% over the last five years was below our standards for the industrials sector
2. High input costs result in an inferior gross margin of 20.3% that must be offset through higher volumes
3. Earnings growth underperformed the sector average over the last five years as its EPS grew by just 3.8% annually

Crown Holdings’s stock price of $110.02 implies a valuation ratio of 13.4x forward P/E. Dive into our free research report to see why there are better opportunities than CCK.

One Stock to Watch:

Zebra (ZBRA)

Trailing 12-Month GAAP Operating Margin: 12.9%

Taking its name from the black and white stripes of barcodes, Zebra Technologies (NASDAQ:ZBRA) provides barcode scanners, mobile computers, RFID systems, and other data capture technologies that help businesses track assets and optimize operations.

Why Does ZBRA Stand Out?

1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 12.5% over the past two years
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 37.9% exceeded its revenue gains over the last two years
3. ZBRA is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Zebra is trading at $244 per share, or 13.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Stocks We Like Even More

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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.