1 Profitable Stock for Long-Term Investors and 2 Facing Challenges

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Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. That said, here is one profitable company that balances growth and profitability and two that may face some trouble.

Two Stocks to Sell:

Amtech (ASYS)

Trailing 12-Month GAAP Operating Margin: 7.3%

Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ: ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.

Why Is ASYS Risky?

  1. Sales tumbled by 14.9% annually over the last two years, showing market trends are working against it during this cycle
  2. Subpar operating margin of -0.7% constrains its ability to invest in process improvements or effectively respond to new competitive threats
  3. Low returns on capital reflect management’s struggle to allocate funds effectively, and its decreasing returns suggest its historical profit centers are aging

At $14.51 per share, Amtech trades at 2.6x trailing 12-month price-to-sales. Dive into our free research report to see why there are better opportunities than ASYS.

Surgery Partners (SGRY)

Trailing 12-Month GAAP Operating Margin: 11.8%

With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ: SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.

Why Are We Cautious About SGRY?

  1. Weak unit sales over the past two years imply it may need to invest in improvements to get back on track
  2. Estimated sales growth of 3.3% for the next 12 months implies demand will slow from its two-year trend
  3. 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Surgery Partners is trading at $15.83 per share, or 33.3x forward P/E. Check out our free in-depth research report to learn more about why SGRY doesn’t pass our bar.

One Stock to Watch:

Noble Corporation (NE)

Trailing 12-Month GAAP Operating Margin: 11.4%

With origins dating back over a century to 1921, Noble Corporation (NYSE: NE) operates drilling rigs that oil and gas companies charter to drill wells in deep ocean waters and shallow seas.

Why Should NE Be on Your Watchlist?

  1. Annual revenue growth of 29.7% over the last five years was superb and indicates its market share increased during this cycle
  2. Economies of scale give it some operating leverage when demand rises
  3. EBITDA profits and efficiency rose over the last five years as it benefited from some fixed cost leverage

Noble Corporation’s stock price of $41.44 implies a valuation ratio of 47.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

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