New: Instantly spot drawdowns, dips, insider moves, and breakout themes across Maps and Screener.

Learn More

3 Profitable Stocks That Concern Us

By Adam Hejl | January 22, 2026, 11:36 PM

RNG Cover Image

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.

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 are three profitable companies to steer clear of and a few better alternatives.

RingCentral (RNG)

Trailing 12-Month GAAP Operating Margin: 3.8%

Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE:RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services.

Why Are We Out on RNG?

  1. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 4.2% underwhelmed
  2. Estimated sales growth of 4.3% for the next 12 months implies demand will slow from its two-year trend
  3. Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low

At $26.88 per share, RingCentral trades at 0.9x forward price-to-sales. If you’re considering RNG for your portfolio, see our FREE research report to learn more.

AerSale (ASLE)

Trailing 12-Month GAAP Operating Margin: 4%

Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ:ASLE) delivers full-service support to mid-life commercial aircraft.

Why Is ASLE Risky?

  1. Sales were flat over the last two years, indicating it’s failed to expand this cycle
  2. Cash burn makes us question whether it can achieve sustainable long-term growth
  3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

AerSale’s stock price of $7.61 implies a valuation ratio of 12.3x forward P/E. Read our free research report to see why you should think twice about including ASLE in your portfolio.

ICU Medical (ICUI)

Trailing 12-Month GAAP Operating Margin: 5.6%

Founded in 1984 and named for its initial focus on intensive care units, ICU Medical (NASDAQ:ICUI) develops and manufactures medical products for infusion therapy, vascular access, and vital care applications used in hospitals and other healthcare settings.

Why Do We Steer Clear of ICUI?

  1. 2.1% annual revenue growth over the last two years was slower than its healthcare peers
  2. Estimated sales decline of 7.7% for the next 12 months implies a challenging demand environment
  3. Free cash flow margin shrank by 11.7 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

ICU Medical is trading at $158.54 per share, or 20.9x forward P/E. Check out our free in-depth research report to learn more about why ICUI doesn’t pass our bar.

High-Quality Stocks for All Market Conditions

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.

Mentioned In This Article

Latest News