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. That said, here is one cash-producing company that excels at turning cash into shareholder value and two best left off your watchlist.
Two Industrials Stocks to Sell:
Owens Corning (OC)
Trailing 12-Month Free Cash Flow Margin: 9.5%
Credited with the discovery of fiberglass, Owens Corning (NYSE: OC) supplies building and construction materials to the United States and international markets.
Why Do We Steer Clear of OC?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 2.2% over the last two years was below our standards for the industrials sector
- Earnings per share fell by 7.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- Diminishing returns on capital suggest its earlier profit pools are drying up
Owens Corning’s stock price of $122.25 implies a valuation ratio of 12.8x forward P/E. Read our free research report to see why you should think twice about including OC in your portfolio.
Knight-Swift Transportation (KNX)
Trailing 12-Month Free Cash Flow Margin: 10.2%
Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE: KNX) offers less-than-truckload and full truckload delivery services.
Why Do We Pass on KNX?
- 2.3% annual revenue growth over the last two years was slower than its industrials peers
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 14.4% annually while its revenue grew
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Knight-Swift Transportation is trading at $61.47 per share, or 30.6x forward P/E. If you’re considering KNX for your portfolio, see our FREE research report to learn more.
One Industrials Stock to Watch:
Cadre (CDRE)
Trailing 12-Month Free Cash Flow Margin: 9.9%
Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Why Are We Fans of CDRE?
- Annual revenue growth of 13.4% over the last two years was superb and indicates its market share increased during this cycle
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 16.1%
- Earnings per share grew by 19.9% annually over the last two years, massively outpacing its peers
At $43.68 per share, Cadre trades at 28.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
