3 Profitable Stocks Worth Investigating

Profitability is a key measure of business strength. Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.

Identifying the most compelling profitable companies isn’t always straightforward, and that’s why we started StockStory. That said, here are three profitable companies that leverage their financial strength to beat the competition.

Commvault (CVLT)

Trailing 12-Month GAAP Operating Margin: 7.3%

Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ:CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.

Why Does CVLT Stand Out?

1. Billings have averaged 26.6% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Prominent and differentiated software results in a stellar gross margin of 81.4%
3. Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale

At $87.42 per share, Commvault trades at 3.1x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.

Arthur J. Gallagher (AJG)

Trailing 12-Month GAAP Operating Margin: 13.4%

Founded in 1927 and operating in approximately 130 countries through direct operations and correspondent networks, Arthur J. Gallagher (NYSE:AJG) provides insurance brokerage, reinsurance, consulting, and third-party claims settlement services to businesses and individuals worldwide.

Why Do We Love AJG?

1. Impressive 17.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Earnings per share have massively outperformed its peers over the last five years, increasing by 17.7% annually
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Arthur J. Gallagher is trading at $204.98 per share, or 15.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Progressive (PGR)

Trailing 12-Month GAAP Operating Margin: 16.2%

Starting as a small auto insurance company in 1937 with a pioneering focus on high-risk drivers, Progressive (NYSE:PGR) is a major auto, property, and commercial insurance provider that offers policies through independent agents, online platforms, and over the phone.

Why Are We Backing PGR?

1. Net premiums earned surged by 18% annually over the past two years, reflecting strong market share gains this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 72.1% outpaced its revenue gains
3. Projected book value per share growth of 31.5% for the next 12 months is above its two-year trend, pointing to accelerating profitability

Progressive’s stock price of $205.38 implies a valuation ratio of 3.2x forward P/B. Is now a good time to buy? See for yourself in our in-depth 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 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.