1 Profitable Stock on Our Buy List and 2 Facing Headwinds

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.

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 generates reliable profits without sacrificing growth and two that may struggle to keep up.

Two Stocks to Sell:

Leslie's (LESL)

Trailing 12-Month GAAP Operating Margin: -13.7%

Named after founder Philip Leslie, who established the company in 1963, Leslie’s (NASDAQ:LESL) is a retailer that sells pool and spa supplies, equipment, and maintenance services.

Why Are We Out on LESL?

1. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
2. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 31.6% annually, worse than its revenue
3. 15× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

At $2.77 per share, Leslie's trades at 0.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why LESL doesn’t pass our bar.

Addus HomeCare (ADUS)

Trailing 12-Month GAAP Operating Margin: 9.2%

Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.

Why Do We Think Twice About ADUS?

1. Modest revenue base of $1.35 billion gives it less fixed cost leverage and fewer distribution channels than larger companies

Addus HomeCare’s stock price of $114.16 implies a valuation ratio of 17.6x forward P/E. Dive into our free research report to see why there are better opportunities than ADUS.

One Stock to Buy:

O'Reilly (ORLY)

Trailing 12-Month GAAP Operating Margin: 19.3%

Serving both the DIY customer and professional mechanic, O’Reilly Automotive (NASDAQ:ORLY) is an auto parts and accessories retailer that sells everything from fuel pumps to car air fresheners to mufflers.

Why Are We Bullish on ORLY?

1. Same-store sales growth averaged 3.5% over the past two years, showing it’s bringing new and repeat shoppers into its stores
2. Excellent operating margin of 19.5% highlights the efficiency of its business model
3. Industry-leading 42.3% return on capital demonstrates management’s skill in finding high-return investments

O'Reilly is trading at $99.48 per share, or 30.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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