Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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 is one profitable company that generates reliable profits without sacrificing growth and two that may face some trouble.

Two Stocks to Sell:

Carter's (CRI)

Trailing 12-Month GAAP Operating Margin: 6.7%

Rumored to sell more than 10 products for every child born in the United States, Carter's (NYSE: CRI) is an American designer and marketer of children's apparel.

Why Is CRI Risky?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Estimated sales for the next 12 months are flat and imply a softer demand environment
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Carter’s stock price of $25.32 implies a valuation ratio of 9.7x forward P/E. Check out our free in-depth research report to learn more about why CRI doesn’t pass our bar.

Boise Cascade (BCC)

Trailing 12-Month GAAP Operating Margin: 5.3%

Formed through the merger of two lumber companies, Boise Cascade Company (NYSE: BCC) manufactures and distributes wood products and other building materials.

Why Are We Out on BCC?

1. Sales tumbled by 4.2% annually over the last two years, showing market trends are working against its favor during this cycle
2. Free cash flow margin dropped by 5.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Boise Cascade is trading at $84.67 per share, or 12.5x forward P/E. Dive into our free research report to see why there are better opportunities than BCC.

One Stock to Buy:

EVERTEC (EVTC)

Trailing 12-Month GAAP Operating Margin: 22%

Operating one of Latin America's leading PIN debit networks called ATH, EVERTEC (NYSE: EVTC) is a payment transaction processor and financial technology provider that enables merchants and financial institutions across Latin America and the Caribbean to accept and process electronic payments.

Why Will EVTC Outperform?

1. Market share has increased this cycle as its 18.2% annual revenue growth over the last two years was exceptional
2. Incremental sales over the last two years boosted profitability as its annual earnings per share growth of 19.4% outstripped its revenue performance
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

At $35.80 per share, EVERTEC trades at 10.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 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.