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.
Not all profitable companies are created equal, and that’s why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here is one profitable company that balances growth and profitability and two best left off your watchlist.
Two Stocks to Sell:
Lattice Semiconductor (LSCC)
Trailing 12-Month GAAP Operating Margin: 1.4%
A global leader in its category, Lattice Semiconductor (NASDAQ: LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Why Do We Think Twice About LSCC?
- Sales tumbled by 17.8% annually over the last two years, showing market trends are working against its favor during this cycle
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 15 percentage points
- Earnings per share lagged its peers over the last five years as they only grew by 5.2% annually
Lattice Semiconductor’s stock price of $66 implies a valuation ratio of 52.6x forward P/E. Read our free research report to see why you should think twice about including LSCC in your portfolio.
PVH (PVH)
Trailing 12-Month GAAP Operating Margin: 2.2%
Founded in 1881 by a husband and wife duo, PVH (NYSE: PVH) is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger.
Why Do We Pass on PVH?
- Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track
- Estimated sales growth of 2.5% for the next 12 months is soft and implies weaker demand
- Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up
At $82.02 per share, PVH trades at 6.9x forward P/E. If you’re considering PVH for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Stryker (SYK)
Trailing 12-Month GAAP Operating Margin: 15.2%
With over 150 million patients impacted annually through its innovative healthcare technologies, Stryker (NYSE: SYK) develops and manufactures advanced medical devices and equipment across orthopedics, surgical tools, neurotechnology, and patient care solutions.
Why Should SYK Be on Your Watchlist?
- Core business is healthy and doesn’t need acquisitions to boost sales as its organic revenue growth averaged 10.2% over the past two years
- Revenue base of $23.82 billion gives it economies of scale and some negotiating power
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 13.3% annually
Stryker is trading at $388.52 per share, or 27.8x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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