Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn’t mean it will thrive tomorrow.
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 leverage their financial strength to beat the competition and one that may face some trouble.
One Stock to Sell:
European Wax Center (EWCZ)
Trailing 12-Month GAAP Operating Margin: 24.3%
Founded by two siblings, European Wax Center (NASDAQ: EWCZ) is a beauty and waxing salon chain specializing in professional wax services and skincare products.
Why Do We Avoid EWCZ?
- Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
- Earnings growth underperformed the sector average over the last four years as its EPS grew by just 4% annually
- Returns on capital are increasing as management makes relatively better investment decisions
European Wax Center’s stock price of $3.99 implies a valuation ratio of 6.4x forward P/E. If you’re considering EWCZ for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
QuinStreet (QNST)
Trailing 12-Month GAAP Operating Margin: 1.1%
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Will QNST Outperform?
- Market share has increased this cycle as its 40.1% annual revenue growth over the last two years was exceptional
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 320% annually, topping its revenue gains
- Free cash flow margin expanded by 4 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $14.31 per share, QuinStreet trades at 12.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Piper Sandler (PIPR)
Trailing 12-Month GAAP Operating Margin: 15.4%
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Why Should You Buy PIPR?
- Market share has increased this cycle as its 17.4% annual revenue growth over the last two years was exceptional
- Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 35.2% outpaced its revenue gains
- Balance sheet strength has increased this cycle as its 12.8% annual tangible book value per share growth over the last two years was exceptional
Piper Sandler is trading at $351.05 per share, or 20.2x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
