1 Profitable Stock on Our Watchlist and 2 We Question

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. Keeping that in mind, here is one profitable company that balances growth and profitability and two that may struggle to keep up.

Two Stocks to Sell:

General Mills (GIS)

Trailing 12-Month GAAP Operating Margin: 20.5%

Best known for its portfolio of powerhouse breakfast cereal brands, General Mills (NYSE:GIS) is a packaged foods company that has also made a mark in cereals, baking products, and snacks.

Why Should You Dump GIS?

1. Falling unit sales over the past two years indicate demand is soft and that the company may need to revise its product strategy
2. Sales are expected to decline once again over the next 12 months as it continues working through a challenging demand environment
3. Free cash flow margin dropped by 4.6 percentage points over the last year, implying the company became more capital intensive as competition picked up

General Mills is trading at $45.52 per share, or 12.9x forward P/E. To fully understand why you should be careful with GIS, check out our full research report (it’s free).

WeightWatchers (WW)

Trailing 12-Month GAAP Operating Margin: 13%

Known by many for its old cable television commercials, WeightWatchers (NASDAQ:WW) is a wellness company offering a range of products and services promoting weight loss and healthy habits.

Why Do We Avoid WW?

1. Demand for its offerings was relatively low as its number of members has underwhelmed
2. Poor expense management has led to an operating margin of 12.3% that is below the industry average
3. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

WeightWatchers’s stock price of $20.86 implies a valuation ratio of 13.9x forward P/E. Dive into our free research report to see why there are better opportunities than WW.

One Stock to Watch:

Main Street Capital (MAIN)

Trailing 12-Month GAAP Operating Margin: 64.8%

With a focus on building long-term partnerships rather than quick transactions, Main Street Capital (NYSE:MAIN) is a business development company that provides long-term debt and equity capital to lower middle market and middle market companies.

Why Is MAIN on Our Radar?

1. Annual revenue growth of 20.5% over the past five years was outstanding, reflecting market share gains this cycle
2. Industry-leading 17.6% return on equity demonstrates management’s skill in finding high-return investments

At $56.95 per share, Main Street Capital trades at 14.6x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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.