Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.

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 is one profitable company that balances growth and profitability and two best left off your watchlist.

Two Stocks to Sell:

DocuSign (DOCU)

Trailing 12-Month GAAP Operating Margin: 7.8%

Founded by Seattle-based entrepreneur Tom Gonser, DocuSign (NASDAQ:DOCU) is the pioneer of e-signature and offers software as a service that allows people and organisations to sign legally binding documents electronically.

Why Are We Hesitant About DOCU?

1. Revenue increased by 10.8% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
2. Products, pricing, or go-to-market strategy may need some adjustments as its 6.4% average billings growth over the last year was weak
3. Estimated sales growth of 5.9% for the next 12 months implies demand will slow from its three-year trend

DocuSign’s stock price of $79.41 implies a valuation ratio of 5.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than DOCU.

Carriage Services (CSV)

Trailing 12-Month GAAP Operating Margin: 21.9%

Established in 1991, Carriage Services (NYSE:CSV) is a provider of funeral and cemetery services in the United States.

Why Do We Think Twice About CSV?

1. Annual revenue growth of 5.3% over the last two years was below our standards for the consumer discretionary sector
2. Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

At $46.85 per share, Carriage Services trades at 7.3x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including CSV in your portfolio, it’s free.

One Stock to Watch:

Procter & Gamble (PG)

Trailing 12-Month GAAP Operating Margin: 25.2%

Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE:PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.

Why Do We Like PG?

1. Unparalleled brand awareness is evident in its $83.93 billion revenue base, which gives it advantageous terms because retailers must stock its products
2. Highly efficient business model is illustrated by its impressive 25.2% operating margin
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Procter & Gamble is trading at $157.55 per share, or 22.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. 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-small-cap company Comfort Systems (+782% 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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