3 Profitable Stocks for Long-Term Investors

Companies with solid operating margins have a competitive edge, allowing them to reinvest for sustainable expansion. The best of these businesses balance profitability with reinvestment, setting themselves up for long-term success.

Even among profitable businesses, only a select few truly maximize their potential - and StockStory is here to help you find them. Keeping that in mind, here are three profitable companies that balance growth and profitability.

CSW (CSW)

Trailing 12-Month GAAP Operating Margin: 17.3%

With over two centuries of combined operations manufacturing and supplying, CSW (NYSE:CSW) offers special chemicals, coatings, sealants, and lubricants for various industries.

Why Will CSW Beat the Market?

1. Market share has increased this cycle as its 21.2% annual revenue growth over the last five years was exceptional
2. Earnings per share grew by 20.5% annually over the last two years and trumped its peers
3. Robust free cash flow margin of 15.4% gives it many options for capital deployment, and its improved cash conversion implies it’s becoming a less capital-intensive business

CSW’s stock price of $314.86 implies a valuation ratio of 26.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Insulet (PODD)

Trailing 12-Month GAAP Operating Margin: 17.3%

Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ:PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.

Why Are We Backing PODD?

1. Constant currency growth averaged 26% over the past two years, showing it can expand globally regardless of the macroeconomic environment
2. Free cash flow margin increased by 32.6 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. Returns on capital are growing as management capitalizes on its market opportunities

Insulet is trading at $253.94 per share, or 42.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Ibotta (IBTA)

Trailing 12-Month GAAP Operating Margin: 3.9%

Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE:IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.

Why Does IBTA Stand Out?

1. Rise in total redemptions indicates high demand for its offerings
2. Additional sales over the last two years increased its profitability as the 292% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin grew by 48.6 percentage points over the last four years, giving the company more chips to play with

At $21.22 per share, Ibotta trades at 17.6x 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

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 6 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.