1 Profitable Stock to Target This Week and 2 We Turn Down Petr Huřťák Fri, October 16, 2026 at 8:27 AM EDT 3 min read TGT +0.85% TSLA -1.29% DAR -2.42% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages. Just because a business is in the green today doesn't mean it will thrive tomorrow.
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 is one profitable company that leverages its financial strength to beat the competition and two that may face some trouble.
With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE:TGT) serves the suburban consumer who is looking for a wide range of products under one roof.
Flat sales over the last three years suggest it must innovate and find new ways to grow
Poor same-store sales performance over the past two years indicates it's having trouble bringing new shoppers into its brick-and-mortar locations
Gross margin of 28.1% is an output of its commoditized inventory
At $156.01 per share, Target trades at 16.7x forward P/E. Dive into our free research report to see why there are better opportunities than TGT.
Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ:TSLA) is an electric vehicle company accelerating the world's transition to sustainable energy.
Tesla's scale advantage in EV production leads to gross margins that exceed incumbents such as General Motors and Ford. However, a softer macroeconomic backdrop and tariff pressures have weighed on automobile sales, which are highly cyclical.
The company's execution ability is a question mark given its long history of delays, such as the Cybertruck and Robotaxi launches. Its sizeable investments in projects with uncertain return timelines, like Optimus, also raise skepticism from investors.
On the bright side, Tesla's Megapack product solves a critical problem for utilities needing renewable energy storage solutions. This innovation has made the energy segment the most profitable and fastest-growing business line for the company.
Tesla's stock price of $362.32 implies a valuation ratio of 188x forward price-to-earnings. To fully understand why you should be careful with TSLA, check out our full research report (it's free).
Turning what others consider waste into valuable resources, Darling Ingredients (NYSE:DAR) collects and transforms animal by-products, used cooking oil, and other bio-nutrients into valuable ingredients for food, feed, fuel, and industrial applications.
Efficiency rose over the last year as its Operating margin increased by 9.5 percentage points
Free cash flow margin grew by 3.8 percentage points over the last year, giving the company more chips to play with
ROIC punches in at 16.1%, illustrating management's expertise in identifying profitable investments
Darling Ingredients is trading at $60.97 per share, or 8.9x forward P/E. Is now the right time to buy? Find out in our full research report, it's free.
WHILE YOU'RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.
