1 Profitable Stock to Own for Decades and 2 We Question

Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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

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 is one profitable company that leverages its financial strength to beat the competition and two that may face some trouble.

Two Stocks to Sell:

Utz (UTZ)

Trailing 12-Month GAAP Operating Margin: 1.6%

Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE:UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.

Why Should You Dump UTZ?

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. Smaller revenue base of $1.44 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
3. Low returns on capital reflect management’s struggle to allocate funds effectively

At $9.78 per share, Utz trades at 11.2x forward P/E. If you’re considering UTZ for your portfolio, see our FREE research report to learn more.

DNOW (DNOW)

Trailing 12-Month GAAP Operating Margin: 5.1%

Spun off from National Oilwell Varco, DNOW (NYSE:DNOW) provides distribution and supply chain solutions for the energy and industrial end markets.

Why Is DNOW Not Exciting?

1. Sales trends were unexciting over the last two years as its 2.5% annual growth was below the typical industrials company
2. Gross margin of 22.7% reflects its high production costs
3. Flat earnings per share over the last two years lagged its peers

DNOW’s stock price of $13.57 implies a valuation ratio of 0.3x forward price-to-sales. Check out our free in-depth research report to learn more about why DNOW doesn’t pass our bar.

One Stock to Buy:

LendingClub (LC)

Trailing 12-Month GAAP Operating Margin: 14.5%

Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub (NYSE:LC) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.

Why Will LC Outperform?

1. Annual revenue growth of 24.7% over the last five years was superb and indicates its market share increased during this cycle
2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 38.3% annually

LendingClub is trading at $19.97 per share, or 13.7x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.