Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.

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 is one profitable company that leverages its financial strength to beat the competition and two that may face some trouble.

Two Stocks to Sell:

C.H. Robinson Worldwide (CHRW)

Trailing 12-Month GAAP Operating Margin: 4.9%

Engaging in contracts with tens of thousands of transportation companies, C.H. Robinson (NASDAQ: CHRW) offers freight transportation and logistics services.

Why Are We Hesitant About CHRW?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 4% annually over the last two years
2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 7.4%
3. Waning returns on capital imply its previous profit engines are losing steam

C.H. Robinson Worldwide’s stock price of $184.90 implies a valuation ratio of 30.6x forward P/E. Read our free research report to see why you should think twice about including CHRW in your portfolio.

HP (HPQ)

Trailing 12-Month GAAP Operating Margin: 5.7%

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

Why Do We Pass on HPQ?

1. Sales were flat over the last five years, indicating it’s failed to expand this cycle
2. Sales are projected to remain flat over the next 12 months as demand decelerates from its two-year trend
3. Performance over the past two years shows its incremental sales were much less profitable, as its earnings per share fell by 2.8% annually

At $18.37 per share, HP trades at 6.2x forward P/E. If you’re considering HPQ for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Tetra Tech (TTEK)

Trailing 12-Month GAAP Operating Margin: 11.8%

With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech (NASDAQ: TTEK) provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide.

Why Does TTEK Stand Out?

1. Annual revenue growth of 13.8% over the last five years was superb and indicates its market share increased during this cycle
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Tetra Tech is trading at $36.66 per share, or 23.6x 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

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.