A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Luckily for you, we built StockStory to help you separate the good from the bad. Keeping that in mind, here is one cash-producing company that excels at turning cash into shareholder value and two best left off your watchlist.
Two Stocks to Sell:
Udemy (UDMY)
Trailing 12-Month Free Cash Flow Margin: 3.5%
With courses ranging from investing to cooking to computer programming, Udemy (NASDAQ: UDMY) is an online learning platform that connects learners with expert instructors who specialize in a wide range of topics.
Why Are We Cautious About UDMY?
- Customer spending has dipped by 1.6% on average as it focused on growing its buyers
- Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
Udemy is trading at $6.88 per share, or 11x forward EV/EBITDA. If you’re considering UDMY for your portfolio, see our FREE research report to learn more.
News Corp (NWSA)
Trailing 12-Month Free Cash Flow Margin: 7.8%
Established in 2013 after a restructuring, News Corp (NASDAQ: NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
Why Should You Dump NWSA?
- Annual revenue declines of 2.5% over the last five years indicate problems with its market positioning
- Anticipated sales growth of 2.5% for the next year implies demand will be shaky
- Low returns on capital reflect management’s struggle to allocate funds effectively
At $29.98 per share, News Corp trades at 33.2x forward P/E. Dive into our free research report to see why there are better opportunities than NWSA.
One Stock to Buy:
Amphenol (APH)
Trailing 12-Month Free Cash Flow Margin: 13.2%
With over 90 years of connecting the world's technologies, Amphenol (NYSE: APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
Why Will APH Beat the Market?
- Annual revenue growth of 15.2% over the last two years was superb and indicates its market share increased during this cycle
- Enormous revenue base of $16.78 billion provides significant distribution advantages
- Earnings per share grew by 20.5% annually over the last five years and trumped its peers
Amphenol’s stock price of $98.33 implies a valuation ratio of 41.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 183% over the last five years (as of March 31st 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-micro-cap company Kadant (+351% 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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