While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. That said, here is one profitable company that balances growth and profitability and two best left off your watchlist.
Two Stocks to Sell:
Griffon (GFF)
Trailing 12-Month GAAP Operating Margin: 18.1%
Initially in the defense industry, Griffon (NYSE: GFF) is a now diversified company specializing in home improvement, professional equipment, and building products.
Why Are We Cautious About GFF?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 3.1% annually over the last two years
- Projected sales for the next 12 months are flat and suggest demand will be subdued
At $81.18 per share, Griffon trades at 13x forward P/E. Dive into our free research report to see why there are better opportunities than GFF.
Integer Holdings (ITGR)
Trailing 12-Month GAAP Operating Margin: 12.1%
With its name reflecting the mathematical term for "whole" or "complete," Integer Holdings (NYSE: ITGR) is a medical device outsource manufacturer that produces components and systems for cardiac, vascular, neurological, and other medical applications.
Why Are We Wary of ITGR?
- Smaller revenue base of $1.83 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Demand is forecasted to shrink as its estimated sales for the next 12 months are flat
- 5.9 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
Integer Holdings’s stock price of $84.31 implies a valuation ratio of 13.2x forward P/E. Check out our free in-depth research report to learn more about why ITGR doesn’t pass our bar.
One Stock to Watch:
Astrana Health (ASTH)
Trailing 12-Month GAAP Operating Margin: 2.1%
Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.
Why Do We Like ASTH?
- Impressive 47.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Expected revenue growth of 34.2% for the next year suggests its market share will rise
- Earnings per share grew by 11.6% annually over the last five years, comfortably beating the peer group average
Astrana Health is trading at $28.43 per share, or 7.9x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
