Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. That said, here are two profitable companies that leverage their financial strength to beat the competition and one best left off your watchlist.

One Stock to Sell:

Getty Images (GETY)

Trailing 12-Month GAAP Operating Margin: 8.6%

With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE: GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.

Why Should You Dump GETY?

1. Sales trends were unexciting over the last two years as its 3.5% annual growth was below the typical business services company
2. Free cash flow margin shrank by 14.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $0.78 per share, Getty Images trades at 22.1x forward P/E. To fully understand why you should be careful with GETY, check out our full research report (it’s free).

Two Stocks to Watch:

Abercrombie and Fitch (ANF)

Trailing 12-Month GAAP Operating Margin: 13.3%

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE: ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Why Are We Bullish on ANF?

1. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 10% over the past two years
2. Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 62.8%
3. Share buybacks catapulted its annual earnings per share growth to 481%, which outperformed its revenue gains over the last three years

Abercrombie and Fitch is trading at $92.13 per share, or 8.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Occidental Petroleum (OXY)

Trailing 12-Month GAAP Operating Margin: 18.7%

Backed by Warren Buffett's Berkshire Hathaway as a major shareholder, Occidental Petroleum (NYSE: OXY) explores for, develops, and produces oil, natural gas liquids, and natural gas, primarily in the United States and Middle East.

Why Could OXY Be a Winner?

1. Dominant market position is represented by its $22.08 billion in revenue and gives it fixed cost leverage when sales grow
2. Superiority of its unit economics results in a stellar gross margin of 65.2%
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Occidental Petroleum’s stock price of $62.93 implies a valuation ratio of 16.9x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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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.