In this article, we will look at the 12 Most Profitable Stocks to Invest In.
Profitable stocks are getting more attention as investors focus on companies that can keep producing earnings even when rates, costs, and demand trends shift. The screen is about identifying businesses with strong profitability metrics, efficient capital use, and durable earnings.
Invesco says the quality factor typically focuses on “companies that are highly profitable, carry low levels of debt, and generate stable earnings,” characteristics that can be “more resilient during periods of economic stress or rising inflation.” MFS adds that the long-term case for quality rests on “disciplined capital allocation, resilient earnings power, and balance sheet strength,” while warning that “Profitability is necessary but not sufficient.” AllianceBernstein makes the same point from another angle, saying “not all earnings are created equal” and that “Economic profits are the most important guide for equity investors.” In summary, the more profitable stocks are not just making money today. They are using capital efficiently and showing that earnings can last.
Against this backdrop, the most profitable stocks deserve a closer look. With that in mind, let us now take a look at the 12 Most Profitable Stocks to Invest In.
Our Methodology
We used the Finviz screener to identify stocks that have a return on equity (ROE) of at least 20% and a net profit margin of over 20%. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12. Eli Lilly and Company (NYSE:LLY)
On May 25, 2026, Eli Lilly and Company (NYSE:LLY) announced positive Phase 1b Heart-2 study results for Verve-102, an investigational in vivo base editing medicine designed to durably turn off the PCSK9 gene in the liver and lower blood low-density lipoprotein cholesterol after a single infusion. In an interim analysis of 35 participants, one dose of Verve-102 produced dose-dependent mean PCSK9 reductions ranging from 51% to 88%, from the 0.3 mg/kg dose to the 1.0 mg/kg dose. Corresponding mean LDL-C reductions were 9%, 44%, 45%, 33%, 51%, and 62%, with durability observed for up to 18 months after treatment.
On May 21, 2026, Wolfe Research said Eli Lilly and Company (NYSE:LLY) reported pivotal Phase 3 results for retatrutide showing “class-leading” weight loss of up to 26.1% at 80 weeks and over 30% at 104 weeks in higher-BMI participants. Wolfe said the data also showed broad improvements in key cardiometabolic risk markers, further strengthening Eli Lilly’s GLP-1 franchise leadership and obesity therapeutics profile. Wolfe maintained an Outperform rating and a $1,350 price target on the shares.
Meanwhile, RBC Capital maintained an Outperform rating and a $1,250 price target on Eli Lilly and Company (NYSE:LLY). RBC said the retatrutide Phase 3 trial was a clean win, citing a clean safety profile and best-in-class efficacy across all doses. RBC said it is modeling a retatrutide launch in 2027, 2030 sales of $4.9B, and 2034 sales of $11.0B with a 70% probability of success.
Eli Lilly and Company (NYSE:LLY) discovers, develops, manufactures, and markets human pharmaceutical products internationally.
11. Texas Instruments Incorporated (NASDAQ:TXN)
On May 25, 2026, BofA raised the firm’s price target on Texas Instruments Incorporated (NASDAQ:TXN) to $370 from $320 and maintained a Buy rating on the shares. BofA said the company’s multi-year content gains still appear underappreciated, while its core industrial and auto markets “have finally turned the corner” from headwinds to cyclical tailwinds. The firm also cited “transformative” growth in AI data.
On May 22, 2026, Seaport Research analyst Jay Goldberg upgraded Texas Instruments Incorporated (NASDAQ:TXN) to Buy from Neutral with a $400 price target. Goldberg said rising data center power consumption and higher electrical intensity per rack are driving a redesign of in-data-center power distribution systems, creating a growth opportunity for power analog semiconductors and potentially improving the sector’s margin profile.
Last month, Texas Instruments Incorporated (NASDAQ:TXN) reported Q1 EPS of $1.68, ahead of the consensus estimate of $1.36. Revenue totaled $4.83B, above the consensus estimate of $4.53B. For Q2, Texas Instruments expects EPS of $1.77-$2.05, compared to the consensus estimate of $1.58, and revenue of $5B-$5.4B, compared to the consensus estimate of $4.87B.
Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers internationally.
