Nasdaq
華爾街日報1 Cash-Producing Stock to Own for Decades and 2 Facing Challenges
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here is one cash-producing company that reinvests wisely to drive long-term success and two that may face some trouble.
Two Stocks to Sell:
Valmont (VMI)
Trailing 12-Month Free Cash Flow Margin: 10%
Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE:VMI) provides engineered products and infrastructure services for the agricultural industry.
Why Does VMI Give Us Pause?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Projected sales growth of 2.8% for the next 12 months suggests sluggish demand
- Gross margin of 28.3% is below its competitors, leaving less money to invest in areas like marketing and R&D
Valmont’s stock price of $414.44 implies a valuation ratio of 19.5x forward P/E. To fully understand why you should be careful with VMI, check out our full research report (it’s free for active Edge members).
LendingTree (TREE)
Trailing 12-Month Free Cash Flow Margin: 5.7%
Using the same comparison model that revolutionized travel booking, LendingTree (NASDAQ:TREE) operates an online platform that connects consumers with financial service providers across mortgages, personal loans, credit cards, insurance, and other financial products.
Why Should You Dump TREE?
- Sales were flat over the last three years, indicating it’s failed to expand its business
- Anticipated sales growth of 8.5% for the next year implies demand will be shaky
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
LendingTree is trading at $51.55 per share, or 7.7x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than TREE.
One Stock to Buy:
Sterling (STRL)
Trailing 12-Month Free Cash Flow Margin: 16.2%
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ:STRL) provides civil infrastructure construction.
Why Are We Bullish on STRL?
- Annual revenue growth of 9.4% over the last five years beat the sector average and underscores the unique value of its offerings
- Free cash flow margin increased by 8.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Rising returns on capital show management is finding more attractive investment opportunities
At $319.79 per share, Sterling trades at 26.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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-micro-cap company Tecnoglass (+1,754% 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.