- LIVE QUOTES
- LEARN
- HELP
Nasdaq
Wall Street JournalEN
3 Cash-Producing Stocks to Research Further
Businesses with strong free cash flow tend to be more adaptable and resilient. Some of these companies shine bright by using their cash wisely to strengthen their market positions.
Even among businesses with healthy cash flow, only a select few maximize its potential, and we’re here to pinpoint them. Keeping that in mind, here are three cash-producing companies that leverage their financial strength to beat the competition.
Lyft (LYFT)
Trailing 12-Month Free Cash Flow Margin: 16.4%
Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.
Why Does LYFT Stand Out?
- Active Riders have increased by an average of 11.2% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 33.8% outpaced its revenue gains
- Free cash flow margin grew by 25 percentage points over the last few years, giving the company more chips to play with
Lyft’s stock price of $19.15 implies a valuation ratio of 11.4x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Nova (NVMI)
Trailing 12-Month Free Cash Flow Margin: 27%
Headquartered in Israel, Nova (NASDAQ:NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Why Should You Buy NVMI?
- Impressive 26.3% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Earnings per share grew by 33.1% annually over the last five years, massively outpacing its peers
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Nova is trading at $334.41 per share, or 36.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
QuinStreet (QNST)
Trailing 12-Month Free Cash Flow Margin: 9.6%
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Will QNST Outperform?
- Impressive 40.1% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 320% over the last two years outstripped its revenue performance
- Free cash flow margin jumped by 4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
At $14.43 per share, QuinStreet trades at 12.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 6 Stocks for this week. 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).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.