1 Profitable Stock Worth Your Attention and 2 We Turn Down

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.

A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that balances growth and profitability and two that may struggle to keep up.

Two Stocks to Sell:

Church & Dwight (CHD)

Trailing 12-Month GAAP Operating Margin: 17.4%

Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE:CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.

Why Is CHD Not Exciting?

1. Annual revenue growth of 4.9% over the last three years was below our standards for the consumer staples sector
2. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
3. Demand will likely fall over the next 12 months as Wall Street expects flat revenue

Church & Dwight is trading at $103.62 per share, or 27.5x forward P/E. Check out our free in-depth research report to learn more about why CHD doesn’t pass our bar.

Lincoln Electric (LECO)

Trailing 12-Month GAAP Operating Margin: 17%

Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries.

Why Are We Hesitant About LECO?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Earnings growth underperformed the sector average over the last two years as its EPS grew by just 2.4% annually
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $285.30 per share, Lincoln Electric trades at 26.6x forward P/E. Read our free research report to see why you should think twice about including LECO in your portfolio.

One Stock to Watch:

Pinterest (PINS)

Trailing 12-Month GAAP Operating Margin: 7.6%

Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.

Why Are We Fans of PINS?

1. Has the opportunity to boost monetization through new features and premium offerings as its monthly active users have grown by 11.4% annually over the last two years
2. Incremental sales over the last three years have been highly profitable as its earnings per share increased by 38.2% annually, topping its revenue gains
3. Strong free cash flow margin of 27.9% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety

Pinterest’s stock price of $17.81 implies a valuation ratio of 6.9x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.