While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

Profits are valuable, but they’re not everything. At StockStory, we help you identify the companies that have real staying power. Keeping that in mind, here is one profitable company that balances growth and profitability and two best left off your watchlist.

Two Stocks to Sell:

Wolverine Worldwide (WWW)

Trailing 12-Month GAAP Operating Margin: 5.8%

Founded in 1883, Wolverine Worldwide (NYSE:WWW) is a global footwear company with a diverse portfolio of brands including Merrell, Hush Puppies, and Saucony.

Why Do We Avoid WWW?

1. Annual revenue declines of 5% over the last five years indicate problems with its market positioning

2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable

3. Negative returns on capital show that some of its growth strategies have backfired

At $12.24 per share, Wolverine Worldwide trades at 9.2x forward price-to-earnings. If you’re considering WWW for your portfolio, see our FREE research report to learn more .

Crane (CR)

Trailing 12-Month GAAP Operating Margin: 16.7%

Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.

Why Do We Pass on CR?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth

2. Projected sales growth of 6.5% for the next 12 months suggests sluggish demand

3. Earnings per share have contracted by 4.1% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance

Crane’s stock price of $141.52 implies a valuation ratio of 25.5x forward price-to-earnings. To fully understand why you should be careful with CR, check out our full research report (it’s free) .

One Stock to Watch:

Transcat (TRNS)

Trailing 12-Month GAAP Operating Margin: 6.5%

Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ:TRNS) provides measurement instruments and supplies.

Why Is TRNS on Our Radar?

1. Annual revenue growth of 10.1% over the last two years beat the sector average and underscores the unique value of its offerings

2. Projected revenue growth of 10.6% for the next 12 months suggests its momentum from the last two years will persist

3. Earnings growth has trumped its peers over the last five years as its EPS has compounded at 17.1% annually