2 Profitable Stocks on Our Watchlist and 1 We Brush Off

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 are two profitable companies that generate reliable profits without sacrificing growth and one that may face some trouble.

One Stock to Sell:

Hain Celestial (HAIN)

Trailing 12-Month GAAP Operating Margin: 2.3%

Sold in over 75 countries around the world, Hain Celestial (NASDAQ:HAIN) is a natural and organic food company whose products range from snacks to teas to baby food.

Why Do We Avoid HAIN?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Sales were less profitable over the last three years as its earnings per share fell by 32.1% annually, worse than its revenue declines
3. High net-debt-to-EBITDA ratio of 6× could force the company to raise capital on unfavorable terms if market conditions deteriorate

At $0.50 per share, Hain Celestial trades at 8.9x forward P/E. If you’re considering HAIN for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Johnson Controls (JCI)

Trailing 12-Month GAAP Operating Margin: 12%

Founded after patenting the electric room thermostat, Johnson Controls (NYSE:JCI) specializes in building products and technology solutions, including HVAC systems, fire and security systems, and energy storage.

Why Does JCI Stand Out?

1. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
2. Share buybacks catapulted its annual earnings per share growth to 17%, which outperformed its revenue gains over the last two years
3. Free cash flow margin expanded by 9.9 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

Johnson Controls’s stock price of $144.02 implies a valuation ratio of 24.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

NMI Holdings (NMIH)

Trailing 12-Month GAAP Operating Margin: 73.2%

Founded in the aftermath of the 2008 housing crisis to bring new capacity to the mortgage insurance market, NMI Holdings (NASDAQ:NMIH) provides mortgage insurance that protects lenders against losses when homebuyers default on their mortgage loans.

Why Could NMIH Be a Winner?

1. Pre-tax profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
2. Annual book value per share growth of 16.7% over the past five years was outstanding, reflecting strong capital accumulation this cycle
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

NMI Holdings is trading at $43.49 per share, or 1.1x forward P/B. 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

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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.