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 is one cash-producing company that excels at turning cash into shareholder value and two that may face some trouble.

Two Stocks to Sell:

PROG (PRG)

Trailing 12-Month Free Cash Flow Margin: 11.3%

Evolving from its origins as Aaron's, Inc. before rebranding in 2020, PROG Holdings (NYSE: PRG) provides alternative payment solutions including lease-to-own options and second-look credit products for consumers who may not qualify for traditional financing.

Why Do We Avoid PRG?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Sales over the last five years were less profitable as its earnings per share fell by 5.4% annually while its revenue was flat
3. Tangible book value per share tumbled by 62.4% annually over the last five years, showing financials sector trends are working against it during this cycle

At $35.71 per share, PROG trades at 7.6x forward P/E. Read our free research report to see why you should think twice about including PRG in your portfolio.

Viavi Solutions (VIAV)

Trailing 12-Month Free Cash Flow Margin: 3.3%

Once known as JDS Uniphase before its 2015 rebranding, Viavi Solutions (NASDAQ: VIAV) provides testing, monitoring and assurance solutions for telecommunications, cloud, enterprise, military, and other critical networks and infrastructure.

Why Do We Think Twice About VIAV?

1. Annual revenue growth of 3.4% over the last five years was below our standards for the industrials sector
2. Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Viavi Solutions’s stock price of $46.60 implies a valuation ratio of 43.4x forward P/E. Dive into our free research report to see why there are better opportunities than VIAV.

One Stock to Buy:

Shift4 (FOUR)

Trailing 12-Month Free Cash Flow Margin: 9.4%

Starting as a payment gateway provider in 1999 and now processing over $200 billion in annual payment volume, Shift4 Payments (NYSE: FOUR) provides integrated payment processing solutions and software that help businesses accept and manage transactions across in-store, online, and mobile channels.

Why Are We Bullish on FOUR?

1. Annual revenue growth of 27.8% over the past two years was outstanding, reflecting market share gains this cycle
2. Additional sales over the last two years increased its profitability as the 34.1% annual growth in its earnings per share outpaced its revenue
3. Market-beating return on equity illustrates that management has a knack for investing in profitable ventures

Shift4 is trading at $38.09 per share, or 6.8x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.