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. Keeping that in mind, here are three profitable companies that balance growth and profitability.
Hilton (HLT)
Trailing 12-Month GAAP Operating Margin: 22%
Founded in 1919, Hilton Worldwide (NYSE:HLT) is a global hospitality company with a portfolio of hotel brands.
Why Is HLT on Our Radar?
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 45.6% exceeded its revenue gains over the last five years
- Industry-leading 24.1% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities
- Returns on capital are growing as management capitalizes on its market opportunities
At $265.68 per share, Hilton trades at 30.1x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
HEICO (HEI)
Trailing 12-Month GAAP Operating Margin: 22.3%
Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
Why Are We Bullish on HEI?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 9.5% over the past two years
- Earnings per share grew by 26.2% annually over the last two years and trumped its peers
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
HEICO is trading at $314.21 per share, or 61.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Leidos (LDOS)
Trailing 12-Month GAAP Operating Margin: 12%
Formed through the split of IT services company SAIC, Leidos (NYSE:LDOS) offers technology and engineering solutions such as military training systems for the defense, civil, and health markets.
Why Does LDOS Stand Out?
- Demand is greater than supply as the company’s 15.7% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 31% exceeded its revenue gains over the last two years
Leidos’s stock price of $189.21 implies a valuation ratio of 16.6x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
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