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 leverages its financial strength to beat its competitors and two best left off your watchlist.
Two Stocks to Sell:
Jabil (JBL)
Trailing 12-Month Free Cash Flow Margin: 4.4%
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE: JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Why Do We Think Twice About JBL?
- Sales tumbled by 7.3% annually over the last two years, showing market trends are working against its favor during this cycle
- Earnings per share lagged its peers over the last two years as they only grew by 6.5% annually
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 3.1% for the last five years
Jabil’s stock price of $213.65 implies a valuation ratio of 19x forward P/E. Read our free research report to see why you should think twice about including JBL in your portfolio.
CONMED (CNMD)
Trailing 12-Month Free Cash Flow Margin: 11.1%
With over five decades of experience in surgical innovation since its founding in 1970, CONMED (NYSE: CNMD) develops and manufactures medical devices and equipment for surgical procedures, specializing in orthopedic and general surgery products.
Why Are We Wary of CNMD?
- Muted 7.4% annual revenue growth over the last two years shows its demand lagged behind its healthcare peers
- Subscale operations are evident in its revenue base of $1.35 billion, meaning it has fewer distribution channels than its larger rivals
- ROIC of 5.2% reflects management’s challenges in identifying attractive investment opportunities
CONMED is trading at $43.55 per share, or 9.6x forward P/E. If you’re considering CNMD for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
CrowdStrike (CRWD)
Trailing 12-Month Free Cash Flow Margin: 23.8%
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Should You Buy CRWD?
- Average billings growth of 25% over the last year enhances its liquidity and shows there is steady demand for its products
- Estimated revenue growth of 21.6% for the next 12 months implies its momentum over the last two years will continue
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $543.86 per share, CrowdStrike trades at 26.4x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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
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