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 are two cash-producing companies that reinvest wisely to drive long-term success and one that may face some trouble.
One Stock to Sell:
Weatherford (WFRD)
Trailing 12-Month Free Cash Flow Margin: 9.9%
Operating in roughly 75 countries with over 300 facilities worldwide, Weatherford (NASDAQ: WFRD) provides equipment and services for drilling, completing, and maintaining oil and gas wells.
Why Does WFRD Give Us Pause?
- Sales tumbled by 5.1% annually over the last ten years, showing market trends are working against its favor during this cycle
- Costly operations and weak unit economics result in an inferior gross margin of 31.7% that must be offset through higher production volumes
Weatherford is trading at $110.50 per share, or 18.6x forward P/E. If you’re considering WFRD for your portfolio, see our FREE research report to learn more.
Two Stocks to Buy:
Accenture (ACN)
Trailing 12-Month Free Cash Flow Margin: 17.3%
With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE: ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.
Why Will ACN Outperform?
- Annual revenue growth of 9.6% over the last five years was superb and indicates its market share increased during this cycle
- Dominant market position is represented by its $72.11 billion in revenue and gives it fixed cost leverage when sales grow
- Free cash flow margin jumped by 5.4 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Accenture’s stock price of $179.34 implies a valuation ratio of 12.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Brown & Brown (BRO)
Trailing 12-Month Free Cash Flow Margin: 22.3%
With roots dating back to 1939 and operations spanning 44 U.S. states and 14 countries, Brown & Brown (NYSE: BRO) is an insurance brokerage and risk management firm that markets and sells insurance products across property, casualty, and employee benefits sectors.
Why Are We Backing BRO?
- Forecasted revenue growth of 11.6% for the next 12 months indicates its momentum over the last two years is sustainable
- Earnings per share grew by 18.5% annually over the last five years and trumped its peers
- BRO is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $60.53 per share, Brown & Brown trades at 13.5x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE.
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.
