Three Profitable Stocks to Avoid and Better Alternatives to Consider

Kimberly-Clark, Choice Hotels, and Connection are three profitable companies to avoid due to soft demand, declining revenue, and shrinking returns on capital. Attractive alternatives include companies with strong growth potential and expanding market share.

Europe's largest cloud provider, OVHcloud (OVH.PA), has reported a significant milestone, surpassing 1 billion euros in annual revenue for the first time. This achievement coincides with the return of founder Octave Klaba as CEO, effective immediately. Klaba, who previously led the company from its founding in 1999 until 2018, will oversee operations as OVHcloud addresses rising demand for artificial intelligence services and growing emphasis on cloud independence amid geopolitical shifts, according to a Reuters report.

The company reported a 9.3% increase in revenue to 1.08 billion euros for fiscal year 2025, with an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin of 40.4%. Net debt rose to 1.1 billion euros as of August 2025, largely due to a share buyback plan. OVHcloud now serves nearly 1,200 clients generating over 100,000 euros in annual recurring revenue, competing with major U.S. rivals such as Amazon Web Services (AMZN.O), Microsoft Azure (MSFT.O), and Google Cloud (GOOGL.O).

For 2026, OVHcloud targets organic revenue growth of 5% to 7%, aiming to strengthen its Webcloud segment and exceed FY2025 EBITDA margin levels. The company projects capital expenditure at 30% to 32% of revenue. While declining to comment on discussions with the European Commission, OVHcloud acknowledged a 180 million euro tender launched by the bloc on October 10 for cloud infrastructure, signaling market progress in this area.

In the broader context of the U.S. stock market, investors are seeking growth companies with robust potential and high insider ownership, which often signals confidence in a company's future prospects. Companies like Dave Inc. (AMRX), Amneal Pharmaceuticals, and Daqo New Energy Corp. (DQ) demonstrate potential with significant insider ownership and strong revenue forecasts, according to a Yahoo Finance article.

In contrast, Kimberly-Clark, Choice Hotels, and Connection are three profitable companies to avoid due to soft demand, declining revenue, and shrinking returns on capital. These companies may not offer the same growth potential as OVHcloud and other high-insider-ownership companies