2 Profitable Stocks on Our Watchlist and 1 That Underwhelm

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".

Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here are two profitable companies that leverage their financial strength to beat the competition and one that may face some trouble.

One Stock to Sell:

Ball (BALL)

Trailing 12-Month GAAP Operating Margin: 9.2%

Started with a $200 loan in 1880, Ball (NYSE:BLL) manufactures aluminum packaging for beverages, personal care, and household products as well as aerospace systems and other technologies.

Why Is BALL 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. High input costs result in an inferior gross margin of 21.5% that must be offset through higher volumes
3. Low free cash flow margin of -0.7% for the last five years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

Ball’s stock price of $55.53 implies a valuation ratio of 14.4x forward P/E. To fully understand why you should be careful with BALL, check out our full research report (it’s free).

Two Stocks to Watch:

Remitly (RELY)

Trailing 12-Month GAAP Operating Margin: 2.3%

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.

Why Will RELY Outperform?

1. Active Customers have grown by 31.9% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
2. Additional sales over the last three years increased its profitability as the 74.6% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin increased by 24.7 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Remitly is trading at $13.27 per share, or 9.2x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

LSI (LYTS)

Trailing 12-Month GAAP Operating Margin: 6.6%

Enhancing commercial environments, LSI (NASDAQ:LYTS) provides lighting and display solutions for businesses and retailers.

Why Does LYTS Stand Out?

1. Annual revenue growth of 15.6% over the past five years was outstanding, reflecting market share gains this cycle
2. Operating margin expanded by 2.8 percentage points over the last five years as it scaled and became more efficient
3. Earnings per share have massively outperformed its peers over the last five years, increasing by 50.7% annually

At $19.52 per share, LSI trades at 15.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.