3 Profitable Stocks That Concern Us
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.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. That said, here are three profitable companies to avoid and some better opportunities instead.
Trailing 12-Month GAAP Operating Margin: 21.9%
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Why Are We Cautious About TER?
Annual revenue growth of 3% over the last five years was below our standards for the semiconductor sector
Anticipated sales growth of 2.3% for the next year implies demand will be shaky
Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 7.9 percentage points
Teradyne's stock price of $75 implies a valuation ratio of 20.8x forward P/E. Dive into our free research report to see why there are better opportunities than TER.
Trailing 12-Month GAAP Operating Margin: 5.9%
With a strong presence in the Southern and Central US, America's Car-Mart (NASDAQ:CRMT) sells used cars to budget-conscious consumers.
Why Do We Steer Clear of CRMT?
Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
Gross margin of 20.2% is below its competitors, leaving less money for marketing and promotions
Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
America's Car-Mart is trading at $46.71 per share, or 14.7x forward P/E. To fully understand why you should be careful with CRMT, check out our full research report (it's free).
Trailing 12-Month GAAP Operating Margin: 5.6%
Historically owning furniture, banking, and other subsidiaries, ArcBest (NASDAQ:ARCB) offers full-truckload, less-than-truckload, and intermodal deliveries of freight.
Why Should You Dump ARCB?
Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
Earnings per share have dipped by 32.9% annually over the past two years, which is concerning because stock prices follow EPS over the long term
Diminishing returns on capital suggest its earlier profit pools are drying up
At $58.93 per share, ArcBest trades at 9.2x forward P/E. If you're considering ARCB for your portfolio, see our FREE research report to learn more.
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
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Feds seek to ditch settlement over alleged redlining with North Jersey bank
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'It goes without saying it's a good thing when financial institutions are complying with those consent orders, but when you take away the teeth — the actual enforcement — who's to say that they will continue to comply,' said Leila Amirhamzeh, director of community reinvestment for New Jersey Citizen Action, a consumer advocacy four-page motion by the Justice Department, filed May 28 in U.S. District Court, seeks to terminate the consent order the Biden administration negotiated with what was then Lakeland Bank. In the initial complaint, the Justice Department said Lakeland violated the federal Fair Housing Act and Equal Credit Opportunity Act by deliberately avoiding banking with Black and Hispanic customers, particularly in and around Newark. The discrimination in question allegedly took place between 2015 and 2021, according to the Biden administration. To settle the complaint, Lakeland agreed to pay $12 million to subsidize mortgages, home improvement loans and home refinancing loans for Black and Hispanic residents and open two branches in underserved neighborhoods. Lakeland also had to provide $150,000 a year for advertising, outreach and consumer finance education in the Newark area. Newark Mayor and Democratic gubernatorial candidate Ras Baraka wanted one of those new branches to be in his city, and the Greater Toms River Chamber of Commerce also wanted a branch in its area. According to the Provident Bank website, there are currently four locations in Newark and three in Toms River. After acquiring Lakeland, Provident took ownership of the settlement and the mandate to open two branches in underserved areas of New Jersey. The Justice Department in its motion to terminate the order said Lakeland reached substantial commitment to comply with the consent agreement and it is committed to continuing its disbursement of the loan subsidy. Provident spokesperson Keith Buscio told and the USA TODAY Network New Jersey that the bank remains committed to the loan subsidy initiative. He said Provident is not a party to the litigation and referred other questions to the Justice Department. The Justice Department could not immediately be reached for comment. Baraka's office in Newark said it is planning to hold a press conference about the motion by the Justice Department on June 5. Court filings show two attorneys who helped file the initial complaint against Lakeland, Michael Campion and Susan Millenky, withdrew as counsel from the case. Campion was appointed in 2022 to lead the U.S. Attorney's Office's Civil Rights Division that was created to enforce federal civil rights laws in New Jersey. 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Personalis' NeXT Personal® Predicts Cervical Cancer Recurrence Risk in New CALLA Phase 3 Study Analysis Presented at ASCO
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Such forward-looking statements involve known and unknown risks and uncertainties and other factors that may cause actual results to differ materially from any anticipated results or expectations expressed or implied by such statements, including the risks, uncertainties and other factors that relate to the ability of NeXT Personal to detect small traces of ctDNA, detect residual or recurrent cancer early (including detection earlier than standard of care imaging), monitor or predict a patient's response to therapy or risk of cancer recurrence, accurately predict clinical outcomes for cancer patients, or impact cancer care or management (including for escalation or de-escalation of treatment), or to the clinical adoption or use of, or the ability of Personalis to obtain Medicare coverage or reimbursement for, the NeXT Personal test, or to the sufficiency of the publication and study results described in this press release to support such adoption, use, coverage or reimbursement. These and other potential risks and uncertainties that could cause actual results to differ materially from the results predicted in these forward-looking statements are described under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Personalis' Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (SEC) on February 27, 2025, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 6, 2025. All information provided in this release is as of the date of this press release, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. Personalis undertakes no duty to update this information unless required by law. Not affiliated with or endorsed by ASCO. View source version on Contacts Investors: Caroline Cornerinvestors@ 415-202-5678 Media Contact pr@
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Citigroup reverses firearms policy after pressure from Trump administration on big banks
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