Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. That said, here is one profitable company that generates reliable profits without sacrificing growth and two that may struggle to keep up.

Two Stocks to Sell:

Palo Alto Networks (PANW)

Trailing 12-Month GAAP Operating Margin: 9.6%

Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ:PANW) provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats.

Why Does PANW Give Us Pause?

1. Gross margin of 72% is below its competitors, leaving less money to invest in areas like marketing and R&D
2. Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
3. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 1.5 percentage points

Palo Alto Networks is trading at $337.28 per share, or 19.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than PANW.

Goodyear (GT)

Trailing 12-Month GAAP Operating Margin: 2.1%

With its iconic blimp floating above major sporting events since 1925, Goodyear (NASDAQ:GT) is one of the world's largest tire manufacturers, producing and selling tires for automobiles, trucks, aircraft, and other vehicles, along with related services.

Why Is GT Risky?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 4.9% annually over the last two years
2. Earnings per share decreased by more than its revenue over the last two years, partly because it diluted shareholders
3. Negative free cash flow raises questions about the return timeline for its investments

At $6.64 per share, Goodyear trades at 5.6x forward EV-to-EBITDA. To fully understand why you should be careful with GT, check out our full research report (it’s free).

One Stock to Buy:

Chord Energy (CHRD)

Trailing 12-Month GAAP Operating Margin: 3.6%

Holding the largest acreage position in the Williston Basin, Chord Energy (NASDAQ:CHRD) drills for and produces crude oil, natural gas liquids, and natural gas in North Dakota's Williston Basin.

What Makes CHRD Stand Out?

1. Annual revenue growth of 21.8% over the last ten years was superb and indicates its market share increased during this cycle
2. $5.33 billion in revenue gives it scale, which leads to bargaining power with suppliers and retailers
3. CHRD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Chord Energy’s stock price of $118.52 implies a valuation ratio of 6.2x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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.