Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. Keeping that in mind, here are two profitable companies that balance growth and profitability and one best left off your watchlist.
One Stock to Sell:
AMN Healthcare Services (AMN)
Trailing 12-Month GAAP Operating Margin: 1.4%
With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE: AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.
Why Do We Steer Clear of AMN?
- Declining travelers on assignment over the past two years imply it may need to invest in improvements to get back on track
- Earnings per share have dipped by 7.1% annually over the past five years, which is concerning because stock prices follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
AMN Healthcare Services’s stock price of $32.12 implies a valuation ratio of 37.7x forward P/E. Read our free research report to see why you should think twice about including AMN in your portfolio.
Two Stocks to Buy:
Nextpower (NXT)
Trailing 12-Month GAAP Operating Margin: 19.6%
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextpower (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Are We Backing NXT?
- Annual revenue growth of 19.3% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin expanded by 25.3 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Improving returns on capital reflect management’s ability to monetize investments
At $112.98 per share, Nextpower trades at 25x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
TD SYNNEX (SNX)
Trailing 12-Month GAAP Operating Margin: 2.6%
Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE: SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.
Why Do We Love SNX?
- Impressive 25.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
- Massive revenue base of $69.77 billion makes it a well-known name that influences purchasing decisions
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
TD SYNNEX is trading at $282.55 per share, or 16.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
