2 Profitable Stocks to Consider Right Now and 1 We Question

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 best left off your watchlist.

One Stock to Sell:

Zimmer Biomet (ZBH)

Trailing 12-Month GAAP Operating Margin: 14%

With a history dating back to 1927 and a presence in over 100 countries worldwide, Zimmer Biomet (NYSE:ZBH) designs and manufactures orthopedic products including knee and hip replacements, surgical tools, and robotic technologies for joint reconstruction and spine surgeries.

Why Does ZBH Worry Us?

1. Muted 5.6% annual revenue growth over the last five years shows its demand lagged behind its healthcare peers
2. Estimated sales growth of 2.4% for the next 12 months implies demand will slow from its two-year trend
3. Underwhelming 4.2% return on capital reflects management’s difficulties in finding profitable growth opportunities

Zimmer Biomet is trading at $82.77 per share, or 9.7x forward P/E. Check out our free in-depth research report to learn more about why ZBH doesn’t pass our bar.

Two Stocks to Watch:

Marvell Technology (MRVL)

Trailing 12-Month GAAP Operating Margin: 16%

Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.

Why Are We Positive on MRVL?

1. Annual revenue growth of 22.9% over the past five years was outstanding, reflecting market share gains this cycle
2. Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 45.4%
3. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage

Marvell Technology’s stock price of $219.61 implies a valuation ratio of 45.2x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Taboola (TBLA)

Trailing 12-Month GAAP Operating Margin: 6.1%

Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ:TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.

Why Does TBLA Stand Out?

1. Market share has increased this cycle as its 13.1% annual revenue growth over the last two years was exceptional
2. Free cash flow margin grew by 8.8 percentage points over the last five years, giving the company more chips to play with
3. Improving returns on capital suggest its past investments are beginning to deliver value

At $4.96 per share, Taboola trades at 0.7x trailing 12-month price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.