A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are two cash-producing companies that leverage their financial strength to beat the competition and one best left off your watchlist.
One Stock to Sell:
Hub Group (HUBG)
Trailing 12-Month Free Cash Flow Margin: 3.3%
Started with $10,000, Hub Group (NASDAQ: HUBG) is a provider of intermodal, truck brokerage, and logistics services, facilitating transportation solutions for businesses worldwide.
Why Do We Think HUBG Will Underperform?
- Sales tumbled by 9% annually over the last two years, showing market trends are working against its favor during this cycle
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 28% annually, worse than its revenue
- Eroding returns on capital suggest its historical profit centers are aging
Hub Group is trading at $43.04 per share, or 21.1x forward P/E. If you’re considering HUBG for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Boot Barn (BOOT)
Trailing 12-Month Free Cash Flow Margin: 4.1%
With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE: BOOT) is a western-inspired apparel and footwear retailer.
Why Could BOOT Be a Winner?
- Fast expansion of new stores to reach markets with few or no locations is justified by its same-store sales growth
- Locations open for at least a year are seeing increased demand as same-store sales have averaged 4.8% growth over the past two years
- Demand for the next 12 months is expected to accelerate above its three-year trend as Wall Street forecasts robust revenue growth of 14.4%
At $197.29 per share, Boot Barn trades at 24.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
LPL Financial (LPLA)
Trailing 12-Month Free Cash Flow Margin: 2.9%
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
Why Is LPLA a Top Pick?
- Annual revenue growth of 30% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 25.5% outpaced its revenue gains
- ROE punches in at 37.9%, illustrating management’s expertise in identifying profitable investments
LPL Financial’s stock price of $321.27 implies a valuation ratio of 13.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
