Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.

Cash flow is valuable, but it’s not everything - StockStory helps you identify the companies that truly put it to work. That said, here are two cash-producing companies that leverage their financial strength to beat the competition and one best left off your watchlist.

Two Stocks to Watch:

Nvidia (NVDA)

Trailing 12-Month Free Cash Flow Margin: 41.3%

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ: NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Why Is NVDA a Good Business?

1. Annual revenue growth of 104% over the past two years was outstanding, reflecting market share gains this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 79.1% exceeded its revenue gains over the last five years
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business

Nvidia’s stock price of $175.19 implies a valuation ratio of 26.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Ollie's (OLLI)

Trailing 12-Month Free Cash Flow Margin: 6.1%

Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet (NASDAQ: OLLI) is a discount retailer that acquires excess inventory then sells at meaningful discounts.

Why Does OLLI Stand Out?

1. Offensive push to build new stores and attack its untapped market opportunities is backed by its same-store sales growth
2. Brick-and-mortar locations are witnessing elevated demand as their same-store sales growth averaged 3.2% over the past two years
3. Market share is on track to rise over the next 12 months as its 14.8% projected revenue growth implies demand will accelerate from its three-year trend

At $114.04 per share, Ollie's trades at 27.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

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 ServiceNow (+163% between June 2020 and June 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.

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