While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

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 generates reliable profits without sacrificing growth and two best left off your watchlist.

Two Stocks to Sell:

Restaurant Brands (QSR)

Trailing 12-Month GAAP Operating Margin: 23.9%

Formed through a strategic merger, Restaurant Brands International (NYSE: QSR) is a multinational corporation that owns three iconic fast-food chains: Burger King, Tim Hortons, and Popeyes.

Why Does QSR Worry Us?

1. Estimated sales growth of 4.4% for the next 12 months implies demand will slow from its six-year trend
2. Costs have risen faster than its revenue over the last year, causing its operating margin to decline by 4.5 percentage points
3. 5× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

Restaurant Brands’s stock price of $66.96 implies a valuation ratio of 17.1x forward P/E. If you’re considering QSR for your portfolio, see our FREE research report to learn more.

Paramount (PSKY)

Trailing 12-Month GAAP Operating Margin: 4.8%

Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ: PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms.

Why Are We Out on PSKY?

1. Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.2% over the last five years was below our standards for the consumer discretionary sector
2. Projected 4.9 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Paramount is trading at $11.23 per share, or 12.9x forward P/E. Dive into our free research report to see why there are better opportunities than PSKY.

One Stock to Buy:

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 Are We Bullish on PIPR?

1. Market share has increased this cycle as its 17.4% annual revenue growth over the last two years was exceptional
2. 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
3. Annual tangible book value per share growth of 12.8% over the last two years was superb and indicates its capital strength increased during this cycle

At $346.32 per share, Piper Sandler trades at 20.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.