Companies with solid operating margins have a competitive edge, allowing them to reinvest for sustainable expansion. The best of these businesses balance profitability with reinvestment, setting themselves up for long-term success.

Even among profitable businesses, only a select few truly maximize their potential - and StockStory is here to help you find them. That said, here are three profitable companies that leverage their financial strength to beat the competition.

Globus Medical (GMED)

Trailing 12-Month GAAP Operating Margin: 13.4%

With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Why Could GMED Be a Winner?

1. Constant currency growth averaged 58.8% over the past two years, showing it can expand globally regardless of the macroeconomic environment
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
3. Earnings per share grew by 21.6% annually over the last five years and trumped its peers

Globus Medical’s stock price of $94.47 implies a valuation ratio of 22.9x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

CBIZ (CBZ)

Trailing 12-Month GAAP Operating Margin: 11.4%

With over 120 offices across 33 states and a team of more than 6,700 professionals, CBIZ (NYSE: CBZ) provides accounting, tax, benefits, insurance brokerage, and advisory services to help small and mid-sized businesses manage their finances and operations.

Why Will CBZ Beat the Market?

1. Annual revenue growth of 31% over the past two years was outstanding, reflecting market share gains this cycle
2. Projected revenue growth of 10% 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 two years as its EPS has compounded at 28.3% annually

At $54.75 per share, CBIZ trades at 13.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Federated Hermes (FHI)

Trailing 12-Month GAAP Operating Margin: 28%

With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE: FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.

Why Are We Positive On FHI?

1. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 22.7% exceeded its revenue gains over the last two years
2. Industry-leading 25% return on equity demonstrates management’s skill in finding high-return investments

Federated Hermes is trading at $52.88 per share, or 10.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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).

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