1 Profitable Stock to Research Further and 2 Facing Headwinds

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. That said, here is one profitable company that generates reliable profits without sacrificing growth and two best left off your watchlist.

Two Stocks to Sell:

Darling Ingredients (DAR)

Trailing 12-Month GAAP Operating Margin: 4.5%

Turning what others consider waste into valuable resources, Darling Ingredients (NYSE:DAR) collects and transforms animal by-products, used cooking oil, and other bio-nutrients into valuable ingredients for food, feed, fuel, and industrial applications.

Why Does DAR Worry Us?

1. Products have few die-hard fans as sales have declined by 2.1% annually over the last three years
2. Overall productivity fell over the last year as its plummeting sales were accompanied by a decline in its operating margin
3. Earnings per share have contracted by 41.3% annually over the last three years, a headwind for returns as stock prices often echo long-term EPS performance

Darling Ingredients is trading at $60.40 per share, or 15.7x forward P/E. If you’re considering DAR for your portfolio, see our FREE research report to learn more.

Viking (VIK)

Trailing 12-Month GAAP Operating Margin: 23.1%

From a single river cruise offering to a fleet of 96 vessels across multiple continents, Viking (NYSE:VIK) operates a fleet of small luxury cruise ships offering river, ocean, and expedition voyages focused on cultural enrichment and destination immersion.

Why Is VIK Risky?

1. 17.5% annual revenue growth over the last two years was slower than its consumer discretionary peers
2. Poor expense management has led to an operating margin of 21.8% that is below the industry average
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

At $79.49 per share, Viking trades at 24.7x forward P/E. Dive into our free research report to see why there are better opportunities than VIK.

One Stock to Watch:

Stifel (SF)

Trailing 12-Month GAAP Operating Margin: 21.8%

Tracing its roots back to 1890 when the firm was established in St. Louis, Stifel Financial (NYSE:SF) is a financial services firm that provides wealth management, investment banking, and institutional brokerage services to individuals, corporations, and institutions.

Why Could SF Be a Winner?

1. Solid 14.2% annual revenue growth over the last two years indicates its offering’s solve complex business issues
2. Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 32.9% outpaced its revenue gains
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

Stifel’s stock price of $77.47 implies a valuation ratio of 12.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.