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. That said, here are two profitable companies that balance growth and profitability and one that may face some trouble.

One Stock to Sell:

Revvity (RVTY)

Trailing 12-Month GAAP Operating Margin: 13.2%

Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.

Why Do We Think RVTY Will Underperform?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Adjusted operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
3. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 14.7% annually, worse than its revenue

Revvity’s stock price of $99.70 implies a valuation ratio of 18.5x forward P/E. If you’re considering RVTY for your portfolio, see our FREE research report to learn more.

Two Stocks to Buy:

Shift4 (FOUR)

Trailing 12-Month GAAP Operating Margin: 8.4%

Starting as a payment gateway provider in 1999 and now processing over $200 billion in annual payment volume, Shift4 Payments (NYSE: FOUR) provides integrated payment processing solutions and software that help businesses accept and manage transactions across in-store, online, and mobile channels.

Why Are We Bullish on FOUR?

1. Annual revenue growth of 27.8% over the past two years was outstanding, reflecting market share gains this cycle
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 34.1% outpaced its revenue gains
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

Shift4 is trading at $41.12 per share, or 6.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Texas Pacific Land (TPL)

Trailing 12-Month GAAP Operating Margin: 74.4%

One of America's largest private landowners with roughly 868,000 acres in the Permian Basin, Texas Pacific Land (NYSE: TPL) owns land in West Texas and earns revenue from oil and gas royalties, water services, and land leases.

Why Will TPL Outperform?

1. Annual revenue growth of 31.3% over the last ten years was superb and indicates its market share increased during this cycle
2. Attractive asset base leads to wonderful unit economics and a best-in-class gross margin of 94.9%
3. TPL is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

At $380.83 per share, Texas Pacific Land trades at 28.2x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum 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.