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 best left off your watchlist.
Two Stocks to Sell:
LeMaitre (LMAT)
Trailing 12-Month Free Cash Flow Margin: 27.5%
Founded in 1983 and named after a pioneering vascular surgeon, LeMaitre Vascular (NASDAQGM:LMAT) develops and manufactures specialized medical devices used by vascular surgeons to treat peripheral vascular disease and other circulatory conditions.
Why Is LMAT Not Exciting?
- Subscale operations are evident in its revenue base of $240.9 million, meaning it has fewer distribution channels than its larger rivals
LeMaitre’s stock price of $85.00 implies a valuation ratio of 32.9x forward P/E. If you’re considering LMAT for your portfolio, see our FREE research report to learn more.
PulteGroup (PHM)
Trailing 12-Month Free Cash Flow Margin: 8.8%
Having delivered over 850,000 homes since its founding in 1950, PulteGroup (NYSE:PHM) is one of America's largest homebuilders, constructing single-family homes, townhouses, and condominiums for first-time, move-up, and active adult buyers across 46 markets in 25 states.
Why Does PHM Fall Short?
- Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 8.2% declines over the past two years
- Estimated sales decline of 6.4% for the next 12 months implies a challenging demand environment
- Flat earnings per share over the last two years underperformed the sector average
PulteGroup is trading at $132.10 per share, or 11.7x forward P/E. Dive into our free research report to see why there are better opportunities than PHM.
One Stock to Watch:
Brink's (BCO)
Trailing 12-Month Free Cash Flow Margin: 8.1%
Known for its iconic armored trucks that have been a fixture in American cities since 1859, Brink's (NYSE:BCO) provides secure transportation and management of cash and valuables for banks, retailers, and other businesses worldwide.
Why Are We Positive On BCO?
- Economies of scale give it more fixed cost leverage than its smaller competitors
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Improving returns on capital reflect management’s ability to monetize investments
At $126.93 per share, Brink's trades at 14.1x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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 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 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.