3 Profitable Stocks for Long-Term Investors

Profitable companies tend to be more resilient, giving them the flexibility to invest and return capital to shareholders. Businesses that consistently generate earnings can better navigate downturns and capitalize on new opportunities.

Even among profitable businesses, only a select few truly maximize their potential - and StockStory is here to help you find them. Keeping that in mind, here are three profitable companies that generate reliable profits without sacrificing growth.

Graham Corporation (GHM)

Trailing 12-Month GAAP Operating Margin: 6.2%

Founded when its founder patented a unique design for a vacuum system used in the sugar refining process, Graham (NYSE:GHM) provides vacuum and heat transfer equipment for the energy, petrochemical, refining, and chemical sectors.

Why Are We Backing GHM?

1. Market share has increased this cycle as its 15% annual revenue growth over the last two years was exceptional
2. Earnings growth has massively outpaced its peers over the last one years as its EPS has compounded at 83.3% annually
3. Free cash flow margin expanded by 15.4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $96.48 per share, Graham Corporation trades at 53.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Plexus (PLXS)

Trailing 12-Month GAAP Operating Margin: 5.2%

With over 20,000 team members across 26 global facilities, Plexus (NASDAQ:PLXS) designs, manufactures, and services complex electronic products for companies in aerospace/defense, healthcare, and industrial sectors.

Why Should PLXS Be on Your Watchlist?

1. Projected revenue growth of 17.7% for the next 12 months is above its two-year trend, pointing to accelerating demand
2. Share repurchases over the last two years enabled its annual earnings per share growth of 28.9% to outpace its revenue gains
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures

Plexus is trading at $258.78 per share, or 29x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.

Ares (ARES)

Trailing 12-Month GAAP Operating Margin: 22.7%

With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE:ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients.

Why Do We Love ARES?

1. Annual revenue growth of 23.2% over the last five years was superb and indicates its market share increased during this cycle
2. Earnings per share have comfortably outperformed the peer group average over the last five years, increasing by 21.3% annually

Ares’s stock price of $123.71 implies a valuation ratio of 19.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.