Profitability is a key measure of business strength. Companies with high margins have proven they can generate consistent earnings while maintaining financial discipline.
Not all profitable companies are worth your attention, but we’re here to highlight the ones with the most upside. That said, here are three profitable companies that generate reliable profits without sacrificing growth.
Apple (AAPL)
Trailing 12-Month GAAP Operating Margin: 31.8%
Creator of the iPhone and App Store, Apple (NASDAQ: AAPL) is a legendary developer of consumer electronics and software.
Why Does AAPL Catch Our Eye?
- Apple's revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently.
- Still, Apple's devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk.
- The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn’t need over-the-top marketing campaigns to convince people to buy its products.
Apple’s stock price of $211.15 implies a valuation ratio of 28.2x forward price-to-earnings. Is now a good time to buy? See for yourself in our full research report, it’s free.
Curtiss-Wright (CW)
Trailing 12-Month GAAP Operating Margin: 17.4%
Formed from a merger of 12 companies, Curtiss-Wright (NYSE: CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Why Should CW Be on Your Watchlist?
- Impressive 10.6% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Curtiss-Wright is trading at $407.25 per share, or 32.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Zoetis (ZTS)
Trailing 12-Month GAAP Operating Margin: 36.5%
Originally spun off from Pfizer in 2013 as the world's largest pure-play animal health company, Zoetis (NYSE: ZTS) discovers, develops, and sells medicines, vaccines, diagnostic products, and services for pets and livestock animals worldwide.
Why Is ZTS on Our Radar?
- Average constant currency growth of 9.1% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
- Industry-leading 28.8% return on capital demonstrates management’s skill in finding high-return investments
At $160.35 per share, Zoetis trades at 26x 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
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 176% over the last five years.
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.
