Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.
A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. Keeping that in mind, here are two profitable companies that leverage their financial strength to beat the competition and one that may face some trouble.
One Stock to Sell:
Elanco (ELAN)
Trailing 12-Month GAAP Operating Margin: 4.3%
Originally established as a division of pharmaceutical giant Eli Lilly before becoming independent in 2018, Elanco Animal Health (NYSE: ELAN) develops and sells medications, vaccines, and other health products for pets and farm animals across more than 90 countries.
Why Are We Wary of ELAN?
- Sales trends were unexciting over the last two years as its 2.5% annual growth was below the typical healthcare company
- 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
- Negative returns on capital show management lost money while trying to expand the business
At $24.72 per share, Elanco trades at 25.4x forward P/E. Read our free research report to see why you should think twice about including ELAN in your portfolio.
Two Stocks to Buy:
Euronet Worldwide (EEFT)
Trailing 12-Month GAAP Operating Margin: 13.2%
Operating a global network of over 47,000 ATMs and 821,000 point-of-sale terminals across more than 60 countries, Euronet Worldwide (NASDAQ: EEFT) provides electronic payment solutions including ATM services, prepaid product processing, and international money transfer services.
Why Is EEFT a Top Pick?
- Annual revenue growth of 11.1% over the last five years beat the sector average and underscores the unique value of its offerings
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 23% exceeded its revenue gains over the last five years
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Euronet Worldwide’s stock price of $74.03 implies a valuation ratio of 6.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Shift4 (FOUR)
Trailing 12-Month GAAP Operating Margin: 8%
Starting as a payment gateway provider in 1999 and now processing over $200 billion in annual payment volume, Shift4 Payments (NYSE: FOUR) provides integrated payment processing solutions and software that help businesses accept and manage transactions across in-store, online, and mobile channels.
Why Do We Love FOUR?
- Market share has increased this cycle as its 27.2% annual revenue growth over the last two years was exceptional
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 40.2% over the last two years outstripped its revenue performance
- Acceptable return on equity suggests management generated shareholder value by investing in profitable projects
Shift4 is trading at $63.78 per share, or 10.9x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
