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 are two cash-producing companies that reinvest wisely to drive long-term success and one best left off your watchlist.

One Stock to Sell:

General Motors (GM)

Trailing 12-Month Free Cash Flow Margin: 7%

Founded in 1908 by William C. Durant, General Motors (NYSE: GM) offers a range of vehicles and automobiles through brands such as Chevrolet, Buick, GMC, and Cadillac.

Why Do We Think Twice About GM?

1. Weak unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Estimated sales decline of 5.3% for the next 12 months implies a challenging demand environment
3. Gross margin of 12.5% is below its competitors, leaving less money to invest in areas like marketing and R&D

General Motors’s stock price of $52.89 implies a valuation ratio of 4.8x forward P/E. If you’re considering GM for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Snowflake (SNOW)

Trailing 12-Month Free Cash Flow Margin: 19.2%

Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE: SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time.

Why Does SNOW Stand Out?

1. Average billings growth of 26.5% over the last year enhances its liquidity and shows there is steady demand for its products
2. High switching costs and customer loyalty are evident in its net revenue retention rate of 126%
3. Notable projected revenue growth of 24.4% for the next 12 months hints at market share gains

Snowflake is trading at $221.49 per share, or 15.4x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Limbach (LMB)

Trailing 12-Month Free Cash Flow Margin: 6.7%

Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services.

Why Should LMB Be on Your Watchlist?

1. Operating margin expansion of 5.3 percentage points over the last five years shows the company optimized its expenses
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 53.3% annually, topping its revenue gains
3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures, and its rising returns show it’s making even more lucrative bets

At $151.34 per share, Limbach trades at 36.3x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 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 Tecnoglass (+1,754% 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