Profitable companies tend to be more resilient, giving them the flexibility to invest and return capital to shareholders. Businesses that consistently generate earnings can better navigate downturns and capitalize on new opportunities.
Even among profitable businesses, only a select few truly maximize their potential - and StockStory is here to help you find them. That said, here are three profitable companies that leverage their financial strength to beat the competition.
Merck (MRK)
Trailing 12-Month GAAP Operating Margin: 33.7%
With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE:MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas.
Why Will MRK Outperform?
- Enormous revenue base of $64.23 billion gives it economies of scale and advantages over new entrants due to the industry’s regulatory complexity
- Adjusted operating margin improvement of 21 percentage points over the last two years demonstrates its ability to scale efficiently
- MRK is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety
At $109.20 per share, Merck trades at 16x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Maximus (MMS)
Trailing 12-Month GAAP Operating Margin: 9%
With nearly 50 years of experience translating public policy into operational programs that serve millions of citizens, Maximus (NYSE:MMS) provides operational services, clinical assessments, and technology solutions to government agencies in the U.S. and internationally.
Why Are We Fans of MMS?
- Annual revenue growth of 9.4% over the last five years was superb and indicates its market share increased during this cycle
- $5.43 billion in revenue allows it to spread its fixed costs across a wider base
- Share repurchases over the last two years enabled its annual earnings per share growth of 34.8% to outpace its revenue gains
Maximus’s stock price of $98.30 implies a valuation ratio of 12x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Enova (ENVA)
Trailing 12-Month GAAP Operating Margin: 12.5%
Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE:ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.
Why Is ENVA a Top Pick?
- Annual revenue growth of 22.7% over the past two years was outstanding, reflecting market share gains this cycle
- Share buybacks catapulted its annual earnings per share growth to 34.1%, which outperformed its revenue gains over the last two years
- Balance sheet strength has increased this cycle as its 22% annual book value per share growth over the last five years was exceptional
Enova is trading at $161.59 per share, or 11.1x 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
Check out the high-quality names we’ve flagged in 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.