1 Profitable Stock with Exciting Potential and 2 to 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Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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 is one profitable company that balances growth and profitability and two best left off your watchlist.

Two Stocks to Sell:

Ralph Lauren (RL)

Trailing 12-Month GAAP Operating Margin: 13.2%

Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style.

Why Are We Hesitant About RL?

1. Lackluster 2.8% annual revenue growth over the last five years indicates the company is losing ground to competitors
2. Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
3. Anticipated sales growth of 4.6% for the next year implies demand will be shaky

Ralph Lauren’s stock price of $267.81 implies a valuation ratio of 19.9x forward P/E. To fully understand why you should be careful with RL, check out our full research report (it’s free).

Tapestry (TPR)

Trailing 12-Month GAAP Operating Margin: 17.9%

Originally founded as Coach, Tapestry (NYSE:TPR) is an American fashion conglomerate with a portfolio of luxury brands offering high-quality accessories and fashion products.

Why Is TPR Not Exciting?

1. Annual revenue growth of 1.6% over the last two years was below our standards for the consumer discretionary sector
2. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
3. Projected sales growth of 2.2% for the next 12 months suggests sluggish demand

Tapestry is trading at $84.73 per share, or 16.4x forward P/E. If you’re considering TPR for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Inspire Medical Systems (INSP)

Trailing 12-Month GAAP Operating Margin: 5.9%

Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE:INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.

Why Should You Buy INSP?

1. Steady expansion of new domestic medical centers reflects a push to reach more customers in underpenetrated markets
2. Earnings per share have massively outperformed its peers over the last five years, increasing by 26.7% annually
3. Free cash flow margin jumped by 48.2 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends

At $129.70 per share, Inspire Medical Systems trades at 47.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today