Nasdaq
华尔街日报1 Cash-Producing Stock with Solid Fundamentals and 2 That Underwhelm
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.
Cash flow is valuable, but it’s not everything - StockStory helps you identify the companies that truly put it to work. That said, here is one cash-producing company that excels at turning cash into shareholder value and two that may face some trouble.
Two Stocks to Sell:
UFP Industries (UFPI)
Trailing 12-Month Free Cash Flow Margin: 4.2%
Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ:UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.
Why Are We Out on UFPI?
- Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 20.4% annually, worse than its revenue
- Waning returns on capital imply its previous profit engines are losing steam
UFP Industries’s stock price of $89.17 implies a valuation ratio of 16.2x forward P/E. To fully understand why you should be careful with UFPI, check out our full research report (it’s free for active Edge members).
Verisk (VRSK)
Trailing 12-Month Free Cash Flow Margin: 36.8%
Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics (NASDAQ:VRSK) provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.
Why Does VRSK Worry Us?
- 2% annual revenue growth over the last five years was slower than its business services peers
- Earnings per share lagged its peers over the last five years as they only grew by 7.2% annually
At $221.09 per share, Verisk trades at 30.5x forward P/E. Check out our free in-depth research report to learn more about why VRSK doesn’t pass our bar.
One Stock to Watch:
Accenture (ACN)
Trailing 12-Month Free Cash Flow Margin: 16.3%
With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE:ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.
Why Does ACN Stand Out?
- Market share has increased this cycle as its 9.6% annual revenue growth over the last five years was exceptional
- Massive revenue base of $70.73 billion makes it a well-known name that influences purchasing decisions
- Industry-leading 38% return on capital demonstrates management’s skill in finding high-return investments
Accenture is trading at $261.32 per share, or 19.2x 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.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum 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.