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2 Profitable Stocks with Solid Fundamentals and 1 Facing Headwinds

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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 leverage their financial strength to beat the competition and one that may struggle to keep up.

One Industrials Stock to Sell:

Apogee (APOG)

Trailing 12-Month GAAP Operating Margin: 7.8%

Involved in the design of the Apple Store on Fifth Avenue in New York City, Apogee (NASDAQ:APOG) sells architectural products and services such as high-performance glass for commercial buildings.

Why Should You Sell APOG?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.3% annually over the last two years
  2. Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 1%
  3. Earnings per share have dipped by 8.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term

At $35.99 per share, Apogee trades at 8.7x forward P/E. If you’re considering APOG for your portfolio, see our FREE research report to learn more.

Two Industrials Stocks to Watch:

AAR (AIR)

Trailing 12-Month GAAP Operating Margin: 7.2%

The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE:AIR) is a provider of aircraft maintenance services

Why Could AIR Be a Winner?

  1. Impressive 16.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
  2. Forecasted revenue growth of 11% for the next 12 months indicates its momentum over the last two years is sustainable
  3. Earnings per share grew by 18.9% annually over the last five years, massively outpacing its peers

AAR is trading at $82.59 per share, or 10x forward EV-to-EBITDA. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

GE Aerospace (GE)

Trailing 12-Month GAAP Operating Margin: 21.3%

One of the original 12 companies on the Dow Jones Industrial Average, General Electric (NYSE:GE) is a multinational conglomerate providing technologies for various sectors including aviation, power, renewable energy, and healthcare.

Why Will GE Beat the Market?

  1. Annual revenue growth of 15.3% over the past two years was outstanding, reflecting market share gains this cycle
  2. Share buybacks catapulted its annual earnings per share growth to 43.6%, which outperformed its revenue gains over the last two years
  3. Robust free cash flow margin of 18.6% gives it many options for capital deployment

GE Aerospace’s stock price of $292.71 implies a valuation ratio of 43.8x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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