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2 Profitable Stocks Worth Your Attention and 1 We Ignore

BGS Cover Image

Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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

One Stock to Sell:

B&G Foods (BGS)

Trailing 12-Month GAAP Operating Margin: 5.3%

Started as a small grocery store in New York City, B&G Foods (NYSE: BGS) is an American packaged foods company with a diverse portfolio of more than 50 brands.

Why Do We Pass on BGS?

  1. Annual revenue declines of 5.4% over the last three years indicate problems with its market positioning
  2. Performance over the past three years was negatively impacted by new share issuances as its earnings per share dropped by 23.1% annually, worse than its revenue
  3. High net-debt-to-EBITDA ratio of 7× could force the company to raise capital at unfavorable terms if market conditions deteriorate

B&G Foods is trading at $5.29 per share, or 9.1x forward P/E. Check out our free in-depth research report to learn more about why BGS doesn’t pass our bar.

Two Stocks to Watch:

Kirby (KEX)

Trailing 12-Month GAAP Operating Margin: 14.8%

Transporting goods along all U.S. coasts, Kirby (NYSE: KEX) provides inland and coastal marine transportation services.

Why Could KEX Be a Winner?

  1. Operating margin improvement of 26.2 percentage points over the last five years demonstrates its ability to scale efficiently
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 30.4% exceeded its revenue gains over the last two years
  3. Rising returns on capital show the company is starting to reap the benefits of its past investments

Kirby’s stock price of $124.28 implies a valuation ratio of 18.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Primerica (PRI)

Trailing 12-Month GAAP Operating Margin: 29.6%

With a sales force of over 140,000 licensed representatives operating on an independent contractor model, Primerica (NYSE: PRI) provides term life insurance, investment products, and other financial services to middle-income households in the United States and Canada.

Why Is PRI Interesting?

  1. Pre-tax profit margin expanded by 6.8 percentage points over the last five years as it scaled and became more efficient
  2. Share repurchases over the last five years enabled its annual earnings per share growth of 18.7% to outpace its revenue gains
  3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

At $249.07 per share, Primerica trades at 3x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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