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.

Not all profitable companies are worth your attention, but we’re here to highlight the ones with the most upside. Keeping that in mind, here are three profitable companies that leverage their financial strength to beat the competition.

Cal-Maine (CALM)

Trailing 12-Month GAAP Operating Margin: 34.3%

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.

Why Is CALM on Our Radar?

1. Remarkable 18.5% revenue growth over the last three years demonstrates its ability to capture significant market share
2. Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Strong free cash flow margin of 22.5% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy

At $89.32 per share, Cal-Maine trades at 28.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

JBT Marel (JBTM)

Trailing 12-Month GAAP Operating Margin: 5%

Tracing back to its invention of the mechanical milk bottle filler in 1884, JBT Marel (NYSE:JBT) designs, manufactures, and sells equipment used for food processing and aviation.

Why Do We Like JBTM?

1. Market share has increased this cycle as its 51.1% annual revenue growth over the last two years was exceptional
2. Sound unit economics and 34.9% gross margin allow for higher marketing and R&D budgets versus competitors
3. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 20.1% annually

JBT Marel is trading at $152.83 per share, or 18.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Medpace (MEDP)

Trailing 12-Month GAAP Operating Margin: 21.1%

Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments.

Why Are We Fans of MEDP?

1. Average organic revenue growth of 15.9% over the past two years demonstrates its ability to expand independently without relying on acquisitions
2. Share repurchases over the last five years enabled its annual earnings per share growth of 31.7% to outpace its revenue gains
3. Free cash flow margin jumped by 6.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

Medpace’s stock price of $469.51 implies a valuation ratio of 26.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

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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.