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. That said, here is one cash-producing company that excels at turning cash into shareholder value and two that may struggle to keep up.
Two Industrials Stocks to Sell:
Winnebago (WGO)
Trailing 12-Month Free Cash Flow Margin: 4.7%
Created to provide high-quality, affordable RVs to the post-war American family, Winnebago (NYSE:WGO) is a manufacturer of recreational vehicles, providing a range of motorhomes, travel trailers, and fifth-wheel products for outdoor and adventure lifestyles.
Why Do We Think WGO Will Underperform?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 6.7% annually over the last two years
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 10.1% annually
- Eroding returns on capital suggest its historical profit centers are aging
At $46.83 per share, Winnebago trades at 18.2x forward P/E. Read our free research report to see why you should think twice about including WGO in your portfolio.
Sealed Air (SEE)
Trailing 12-Month Free Cash Flow Margin: 7.2%
Founded in 1960, Sealed Air Corporation (NYSE: SEE) specializes in the development and production of protective and food packaging solutions, serving a variety of industries.
Why Should You Sell SEE?
- Flat unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Diminishing returns on capital suggest its earlier profit pools are drying up
Sealed Air’s stock price of $41.85 implies a valuation ratio of 12.9x forward P/E. To fully understand why you should be careful with SEE, check out our full research report (it’s free).
One Industrials Stock to Buy:
Dycom (DY)
Trailing 12-Month Free Cash Flow Margin: 6%
Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure.
Why Will DY Beat the Market?
- Annual revenue growth of 11.8% over the last two years was superb and indicates its market share increased during this cycle
- Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
Dycom is trading at $374.72 per share, or 29.2x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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 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 Nvidia (+1,326% 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.