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 is one cash-producing company that leverages its financial strength to beat its competitors and two that may struggle to keep up.
Two Stocks to Sell:
Lantheus (LNTH)
Trailing 12-Month Free Cash Flow Margin: 24.4%
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Are We Hesitant About LNTH?
- Annual revenue growth of 6.4% over the last two years was below our standards for the healthcare sector
- Sales are projected to tank by 4.9% over the next 12 months as demand evaporates
- Day-to-day expenses have swelled relative to revenue over the last two years as its adjusted operating margin fell by 9.8 percentage points
At $99.83 per share, Lantheus trades at 4.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than LNTH.
Bristow Group (VTOL)
Trailing 12-Month Free Cash Flow Margin: 9.6%
Operating what's essentially an airborne taxi service for some of the world's most remote workplaces, Bristow Group (NYSE: VTOL) operates helicopters that transport workers to offshore oil and gas platforms and conduct search and rescue operations.
Why Do We Avoid VTOL?
- Annual revenue growth of 6.1% over the last five years was below our standards for the energy upstream and integrated energy sector
- Modest revenue base of $1.53 billion gives it less fixed cost leverage and fewer distribution channels than larger companies
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of -0.1% for the last five years
Bristow Group is trading at $41.68 per share, or 5.9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why VTOL doesn’t pass our bar.
One Stock to Buy:
Palantir Technologies (PLTR)
Trailing 12-Month Free Cash Flow Margin: 54.1%
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ: PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
Why Are We Backing PLTR?
- Billings growth has averaged 67.6% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- Robust free cash flow margin of 54.1% gives it many options for capital deployment
Palantir Technologies’s stock price of $133.88 implies a valuation ratio of 42.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
