2 Lucrative Stocks for Long-Term Investors and 1 We Choose to Ignore

Profitable Companies: Which Ones Are Built for the Future?

Just because a company is currently making money doesn't guarantee its long-term success. Some businesses depend on outdated strategies or temporary advantages, meaning today's profits might not last into tomorrow.

Not every profitable business is on equal footing. That's why StockStory was created—to help you identify companies with genuine staying power. Below, you'll find two financially strong companies that stand out from the crowd, as well as one that may not deserve a spot on your watchlist.

Stock to Consider Selling

Plexus (PLXS)

Latest 12-Month GAAP Operating Margin: 5.1%

Plexus (NASDAQ: PLXS) employs over 20,000 people across 26 locations worldwide, providing design, manufacturing, and support for sophisticated electronic products in industries such as aerospace, defense, healthcare, and industrial markets.

Reasons for Caution with PLXS:

• In recent years, Plexus has seen a 2.1% annual drop in revenue as customers have delayed purchases.
• Its five-year average free cash flow margin is just 2.7%, limiting the company's ability to invest in growth, repurchase shares, or pay dividends.
• Declining returns on capital indicate that its main profit sources may be losing their edge.

Currently, Plexus shares are priced at $153.30, reflecting a forward price-to-earnings ratio of 20.7.

Two Promising Stocks to Watch

Booking Holdings (BKNG)

Latest 12-Month GAAP Operating Margin: 32.7%

Booking Holdings (NASDAQ: BKNG), formerly known as The Priceline Group, is recognized as the largest online travel agency in the world.

What Sets BKNG Apart?

• Its strong brand and platform have driven annual sales growth of 17.6% over the past three years, outpacing the market.
• Share buybacks have helped boost annual earnings per share by 34.1%, exceeding revenue growth during the same period.
• A robust free cash flow margin of 34.3% allows for consistent reinvestment or capital returns, and improved cash conversion shows the business is becoming less capital-intensive.

With a share price of $5,370, Booking trades at a forward EV/EBITDA multiple of 16.2.

Leidos (LDOS)

Latest 12-Month GAAP Operating Margin: 11.9%

Leidos (NYSE: LDOS), which originated from the split of IT services company SAIC, delivers technology and engineering solutions—including military training systems—to defense, civil, and healthcare sectors.

Why LDOS Stands Out:

• Its average backlog has grown by 15.2% over the past two years, indicating a healthy pipeline for future business.
• Share repurchases have accelerated earnings per share growth beyond revenue gains in the last two years.
• The company’s free cash flow margin has improved by 3.3 percentage points over five years, giving it more flexibility for strategic moves.

Leidos is currently valued at $196.25 per share, with a forward P/E of 15.6.

Discover Even More Compelling Stocks

Don’t let your investments be guided by yesterday’s trends. The risks associated with overcrowded stocks are increasing every day.

Our Top 6 Stocks for this week features a handpicked selection of high-quality companies that have delivered a remarkable 244% return over the past five years (as of June 30, 2025).

Past picks from 2020 include well-known names like Nvidia, which soared by 1,326% between June 2020 and June 2025, as well as lesser-known success stories such as Exlservice, which achieved a 354% five-year return.