2 Profitable Stocks to Own for Decades and 1 We Question

Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn’t mean it will thrive tomorrow.

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 balance growth and profitability and one that may face some trouble.

One Stock to Sell:

Dover (DOV)

Trailing 12-Month GAAP Operating Margin: 17%

A company that manufactured critical equipment for the United States military during World War II, Dover (NYSE:DOV) manufactures engineered components and specialized equipment for numerous industries.

Why Are We Cautious About DOV?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 4.6% annually
3. Waning returns on capital imply its previous profit engines are losing steam

Dover is trading at $226.37 per share, or 21.3x forward P/E. Check out our free in-depth research report to learn more about why DOV doesn’t pass our bar.

Two Stocks to Buy:

Nova (NVMI)

Trailing 12-Month GAAP Operating Margin: 28.8%

Headquartered in Israel, Nova (NASDAQ:NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Why Is NVMI a Good Business?

1. Annual revenue growth of 30.4% over the last two years was superb and indicates its market share increased during this cycle
2. Earnings per share grew by 33.2% annually over the last five years, massively outpacing its peers
3. Strong free cash flow margin of 28.1% enables it to reinvest or return capital consistently

At $448.73 per share, Nova trades at 43.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Instacart (CART)

Trailing 12-Month GAAP Operating Margin: 13.3%

Powering more than one billion grocery orders since its founding, Instacart (NASDAQ:CART) is an online grocery shopping and delivery platform that partners with retailers to help customers shop from local stores through its app or website.

Why Do We Love CART?

1. Superior platform functionality and low servicing costs are reflected in its top-tier gross margin of 74.4%
2. Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 27.7%, and it turbocharged its profits by achieving some fixed cost leverage
3. Free cash flow margin increased by 14.4 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Instacart’s stock price of $37.00 implies a valuation ratio of 7.5x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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.