1 Profitable Stock with Impressive Fundamentals and 2 Facing Challenges

Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.

A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that leverages its financial strength to beat the competition and two best left off your watchlist.

Two Stocks to Sell:

Concrete Pumping (BBCP)

Trailing 12-Month GAAP Operating Margin: 11.9%

Going public via SPAC in 2018, Concrete Pumping (NASDAQ:BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.

Why Is BBCP Risky?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Forecasted revenue decline of 3.1% for the upcoming 12 months implies demand will fall even further
3. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term

Concrete Pumping’s stock price of $6.71 implies a valuation ratio of 16.5x forward P/E. Check out our free in-depth research report to learn more about why BBCP doesn’t pass our bar.

Main Street Capital (MAIN)

Trailing 12-Month GAAP Operating Margin: 64.7%

With a focus on building long-term partnerships rather than quick transactions, Main Street Capital (NYSE:MAIN) is a business development company that provides long-term debt and equity capital to lower middle market and middle market companies.

Why Does MAIN Fall Short?

1. Performance over the past two years shows its incremental sales were less profitable, as its 1.7% annual earnings per share growth trailed its revenue gains

Main Street Capital is trading at $65.57 per share, or 16.9x forward P/E. To fully understand why you should be careful with MAIN, check out our full research report (it’s free).

One Stock to Buy:

Nextracker (NXT)

Trailing 12-Month GAAP Operating Margin: 21.4%

With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextracker (NASDAQ:NXT) is a provider of solar tracker systems that help solar panels follow the sun.

Why Will NXT Outperform?

1. Sales pipeline is in good shape as its backlog averaged 41.7% growth over the past two years
2. Free cash flow margin increased by 13.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. Improving returns on capital reflect management’s ability to monetize investments

At $66.26 per share, Nextracker trades at 17x 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

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

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