2 Profitable Stocks with Impressive Fundamentals and 1 We Find Risky

SelfRugger

2026-03-10 13:09:50

2 Profitable Stocks with Impressive Fundamentals and 1 We Find Risky

Petr Huřťák

Tue, February 24, 2026 at 1:43 PM GMT+9 3 min read

In this article:

                                      StockStory Top Pick

One Stock to Sell:

PVH (PVH)

Trailing 12-Month GAAP Operating Margin: 2.2%

Founded in 1881 by a husband and wife duo, PVH (NYSE:PVH) is a global fashion conglomerate with iconic brands like Calvin Klein and Tommy Hilfiger.

Why Should You Sell PVH?

Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers

Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 6.6% for the last two years

Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

PVH is trading at $68.48 per share, or 6.1x forward P/E. If you’re considering PVH for your portfolio, see our FREE research report to learn more.

Two Stocks to Buy:

Meta (META)

Trailing 12-Month GAAP Operating Margin: 41.4%

Famously founded by Mark Zuckerberg in his Harvard dorm, Meta Platforms (NASDAQ:META) operates a collection of the largest social networks in the world - Facebook, Instagram, WhatsApp, and Messenger, along with its metaverse focused Reality Labs.

Why Is META a Good Business?

29.9% annual increases in its average revenue per user over the last two years show its platform is resonating with power users

Share buybacks catapulted its annual earnings per share growth to 51.3%, which outperformed its revenue gains over the last three years

META is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business

At $638.47 per share, Meta trades at 11.9x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

AppLovin (APP)

Trailing 12-Month GAAP Operating Margin: 75.8%

Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.

Story continues

Why Is APP a Top Pick?

Impressive 29.2% annual revenue growth over the last two years indicates it’s winning market share

User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs

Strong free cash flow margin of 72.5% enables it to reinvest or return capital consistently

AppLovin’s stock price of $378.25 implies a valuation ratio of 17.7x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. 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.

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