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. That said, here is one cash-producing company that reinvests wisely to drive long-term success and two that may struggle to keep up.
Two Stocks to Sell:
Asana (ASAN)
Trailing 12-Month Free Cash Flow Margin: 5.2%
Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE: ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.
Why Do We Think Twice About ASAN?
- Average billings growth of 9.6% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Platform has low switching costs as its net revenue retention rate of 95.7% demonstrates high turnover
- Software platform has intricate integration requirements for its enterprise clients, triggering long sales cycles that limit new customer additions
At $13.30 per share, Asana trades at 3.8x forward price-to-sales. If you’re considering ASAN for your portfolio, see our FREE research report to learn more.
SunOpta (STKL)
Trailing 12-Month Free Cash Flow Margin: 5%
Committed to clean-label foods, SunOpta (NASDAQ: STKL) is a sustainability-focused food and beverage company specializing in the sourcing, processing, and packaging of organic products.
Why Is STKL Not Exciting?
- Annual revenue declines of 4.9% over the last three years indicate problems with its market positioning
- Subscale operations are evident in its revenue base of $763.2 million, meaning it has fewer distribution channels than its larger rivals
- Gross margin of 15.6% is an output of its commoditized products
SunOpta is trading at $6.26 per share, or 25.9x forward P/E. Read our free research report to see why you should think twice about including STKL in your portfolio.
One Stock to Buy:
UnitedHealth (UNH)
Trailing 12-Month Free Cash Flow Margin: 6%
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE: UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
Why Are We Backing UNH?
- Enormous revenue base of $422.8 billion gives it leverage over plan holders and advantageous reimbursement terms with healthcare providers
- Estimated revenue growth of 8.4% for the next 12 months implies its momentum over the last two years will continue
- Stellar returns on capital showcase management’s ability to surface highly profitable business ventures
UnitedHealth’s stock price of $352.99 implies a valuation ratio of 16.3x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 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-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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