Even if a company is profitable, it doesn’t always mean it’s a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.

A business making money today isn’t necessarily a winner, which is why we analyze companies across multiple dimensions at StockStory. Keeping that in mind, here are three profitable companies that don’t make the cut and some better opportunities instead.

Fresh Del Monte Produce (FDP)

Trailing 12-Month GAAP Operating Margin: 3.7%

Translating to "of the mountain" in Spanish, Fresh Del Monte (NYSE: FDP) is a leader in providing high-quality, sustainably grown fresh fruits and vegetables.

Why Is FDP Risky?

1. Sales stagnated over the last three years and signal the need for new growth strategies
2. Forecasted revenue decline of 2.9% for the upcoming 12 months implies demand will fall off a cliff
3. Commoditized products, bad unit economics, and high competition are reflected in its low gross margin of 8.2%

Fresh Del Monte Produce is trading at $36.94 per share, or 13.1x forward P/E. Check out our free in-depth research report to learn more about why FDP doesn’t pass our bar.

Marriott (MAR)

Trailing 12-Month GAAP Operating Margin: 15.9%

Founded by J. Willard Marriott in 1927, Marriott International (NASDAQ: MAR) is a global hospitality company with a portfolio of over 7,000 properties and 30 brands, spanning 130+ countries and territories.

Why Do We Pass on MAR?

1. Softer revenue per room over the past two years suggests it might have to invest in new amenities such as restaurants and bars to attract customers
2. Poor expense management has led to an operating margin of 15.5% that is below the industry average
3. Poor free cash flow margin of 9% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends

Marriott’s stock price of $325.50 implies a valuation ratio of 29.6x forward P/E. Read our free research report to see why you should think twice about including MAR in your portfolio.

Lucky Strike (LUCK)

Trailing 12-Month GAAP Operating Margin: 12.4%

Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE: LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.

Why Do We Think LUCK Will Underperform?

1. Weak same-store sales trends over the past two years suggest there may be few opportunities in its core markets to open new locations
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. 7× net-debt-to-EBITDA ratio makes lenders less willing to extend additional capital, potentially necessitating dilutive equity offerings

At $9.19 per share, Lucky Strike trades at 54.1x forward P/E. To fully understand why you should be careful with LUCK, check out our full research report (it’s free).

Stocks We Like More

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.