The stocks of some companies are purchased because of the companys profitability. In the fashion world, Nordstrom is an example that comes to mind. The stocks of other companies are purchased for their growth potential. Michael Kors is a fashion oriented company that may fit into this category. What is your preference do you prefer a mature company with a profitable history or would you prefer a company with perhaps less current profit but stronger growth potential? Why? Remember that growth potential is exactly that: it is potential - it isn't guaranteed. And remember that a company that is currently profitable presents no guarantee of future results. Include some of the formulas discussed to make your rationale, i.e. P/E, EPS,or any formulas or ratios previously discussed.