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 are two cash-producing companies that leverage their financial strength to beat the competition and one best left off your watchlist.
One Stock to Sell:
Hudson Technologies (HDSN)
Trailing 12-Month Free Cash Flow Margin: 29.6%
Founded in 1991, Hudson Technologies (NASDAQ: HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.
Why Does HDSN Give Us Pause?
- Customers postponed purchases of its products and services this cycle as its revenue declined by 14.1% annually over the last two years
- Earnings per share have contracted by 46.8% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Waning returns on capital imply its previous profit engines are losing steam
At $10.27 per share, Hudson Technologies trades at 11.4x forward EV-to-EBITDA. If you’re considering HDSN for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
CrowdStrike (CRWD)
Trailing 12-Month Free Cash Flow Margin: 23.8%
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Should CRWD Be on Your Watchlist?
- Billings have averaged 25% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Forecasted revenue growth of 21.6% for the next 12 months indicates its momentum over the last three years is sustainable
- CRWD is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
CrowdStrike’s stock price of $444.91 implies a valuation ratio of 20.9x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Sterling (STRL)
Trailing 12-Month Free Cash Flow Margin: 20.4%
Involved in the construction of a major highway, the Grand Parkway in Houston, TX, Sterling Infrastructure (NASDAQ: STRL) provides civil infrastructure construction.
Why Is STRL a Top Pick?
- Solid 9.9% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Free cash flow margin expanded by 12.1 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are growing as management capitalizes on its market opportunities
Sterling is trading at $291 per share, or 33x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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