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 best left off your watchlist.

Two Stocks to Sell:

Genesis Energy (GEL)

Trailing 12-Month GAAP Operating Margin: 15.8%

Operating a 64% stake in the Poseidon Pipeline, one of the Gulf of Mexico's largest crude oil pipelines, Genesis Energy (NYSE: GEL) provides midstream services like pipeline transportation, storage, and processing for crude oil and natural gas producers and refiners.

Why Should You Dump GEL?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 2.2% annually over the last five years
2. Costly operations and weak unit economics result in an inferior gross margin of 24.7% that must be offset through higher production volumes
3. High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens

At $17.60 per share, Genesis Energy trades at 8.7x forward EV-to-EBITDA. To fully understand why you should be careful with GEL, check out our full research report (it’s free).

Global Industrial (GIC)

Trailing 12-Month GAAP Operating Margin: 7.1%

Formerly known as Systemax, Global Industrial (NYSE: GIC) distributes industrial and commercial products to businesses and institutions.

Why Do We Think GIC Will Underperform?

1. Sales trends were unexciting over the last two years as its 4% annual growth was below the typical industrials company
2. Flat earnings per share over the last two years underperformed the sector average
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Global Industrial is trading at $31.37 per share, or 15.7x forward P/E. If you’re considering GIC for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Visa (V)

Trailing 12-Month GAAP Operating Margin: 59.2%

Processing over 829 million transactions daily and connecting billions of cards to 150 million merchant locations worldwide, Visa (NYSE: V) operates one of the world's largest electronic payments networks, facilitating secure money movement across more than 200 countries through its VisaNet processing platform.

Why Is V a Top Pick?

1. Solid 14% annual revenue growth over the last five years indicates its offering’s solve complex business issues
2. Share repurchases over the last five years enabled its annual earnings per share growth of 19% to outpace its revenue gains
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Visa’s stock price of $301.14 implies a valuation ratio of 22.7x forward P/E. Is now the time to initiate a position? Find out in our full 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.