Companies with solid operating margins have a competitive edge, allowing them to reinvest for sustainable expansion. The best of these businesses balance profitability with reinvestment, setting themselves up for long-term success.
Not all profitable companies are worth your attention, but we’re here to highlight the ones with the most upside. Keeping that in mind, here are three profitable companies that generate reliable profits without sacrificing growth.
Brinker International (EAT)
Trailing 12-Month GAAP Operating Margin: 10.4%
Founded by Norman Brinker in Dallas, Brinker International (NYSE: EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.
Why Could EAT Be a Winner?
- Average same-store sales growth of 15.5% over the past two years indicates its restaurants are resonating with diners
- $5.73 billion in revenue gives it scale, which leads to bargaining power with suppliers and retailers
- Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its rising returns show it’s making even more lucrative bets
At $185.23 per share, Brinker International trades at 15.2x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
e.l.f. Beauty (ELF)
Trailing 12-Month GAAP Operating Margin: 4.5%
Short for "eyes, lips, face", e.l.f. Beauty (NYSE: ELF) is a developer of high-quality beauty products at accessible price points.
Why Do We Watch ELF?
- Annual revenue growth of 41.4% over the past three years was outstanding, reflecting market share gains
- Unique products and pricing power are reflected in its best-in-class gross margin of 71%
- Earnings per share have massively outperformed its peers over the last three years, increasing by 23.8% annually
e.l.f. Beauty is trading at $76.90 per share, or 22.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Boeing (BA)
Trailing 12-Month GAAP Operating Margin: 4.6%
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE: BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Why Is BA Interesting?
- Unit sales averaged 69.7% growth over the past two years and imply healthy demand for its products
- Forecasted revenue growth of 10.4% for the next 12 months indicates its momentum over the last two years is sustainable
- Additional sales over the last two years increased its profitability as the 47.6% annual growth in its earnings per share outpaced its revenue
Boeing’s stock price of $222.17 implies a valuation ratio of 554.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
