Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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.
Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. Keeping that in mind, here is one profitable company that leverages its financial strength to beat the competition and two that may face some trouble.
Two Stocks to Sell:
Boot Barn (BOOT)
Trailing 12-Month GAAP Operating Margin: 13%
With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE:BOOT) is a western-inspired apparel and footwear retailer.
Why Is BOOT Not Exciting?
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Smaller revenue base of $1.99 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- 3.9 percentage point decline in its free cash flow margin over the last year reflects the company’s increased investments to defend its market position
Boot Barn’s stock price of $177 implies a valuation ratio of 27.5x forward P/E. Read our free research report to see why you should think twice about including BOOT in your portfolio.
Delta (DAL)
Trailing 12-Month GAAP Operating Margin: 9.3%
One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE:DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.
Why Should You Sell DAL?
- Performance surrounding its revenue passenger miles has lagged its peers
- Estimated sales growth of 2.3% for the next 12 months implies demand will slow from its two-year trend
- ROIC of 5.7% reflects management’s challenges in identifying attractive investment opportunities
Delta is trading at $59.76 per share, or 10.1x forward P/E. Check out our free in-depth research report to learn more about why DAL doesn’t pass our bar.
One Stock to Watch:
Jack Henry (JKHY)
Trailing 12-Month GAAP Operating Margin: 23.9%
Founded in 1976 by two entrepreneurs who saw the need for specialized banking software in the early days of financial computing, Jack Henry & Associates (NASDAQ:JKHY) provides technology solutions that help banks and credit unions innovate, differentiate, and compete while serving the evolving needs of their accountholders.
Why Is JKHY Interesting?
- Incremental sales were more profitable as its annual earnings per share growth of 11.5% outstripped its revenue performance
- Industry-leading 23.7% return on equity demonstrates management’s skill in finding high-return investments
At $152.22 per share, Jack Henry trades at 24.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. 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
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