While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Luckily for you, we built StockStory to help you separate the good from the bad. That said, here is one cash-producing company that reinvests wisely to drive long-term success and two best left off your watchlist.
Two Stocks to Sell:
Lindsay (LNN)
Trailing 12-Month Free Cash Flow Margin: 11.3%
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE: LNN) provides a variety of proprietary water management and road infrastructure products and services.
Why Are We Wary of LNN?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
Lindsay’s stock price of $114.74 implies a valuation ratio of 18.4x forward P/E. Check out our free in-depth research report to learn more about why LNN doesn’t pass our bar.
ICU Medical (ICUI)
Trailing 12-Month Free Cash Flow Margin: 4.2%
Founded in 1984 and named for its initial focus on intensive care units, ICU Medical (NASDAQ: ICUI) develops and manufactures medical products for infusion therapy, vascular access, and vital care applications used in hospitals and other healthcare settings.
Why Are We Cautious About ICUI?
- Sales tumbled by 1.6% annually over the last two years, showing market trends are working against it during this cycle
- Performance over the past five years shows its incremental sales were less profitable, as its 2.9% annual earnings per share growth trailed its revenue gains
- ROIC of 0.9% reflects management’s challenges in identifying attractive investment opportunities
At $142.82 per share, ICU Medical trades at 16.8x forward P/E. To fully understand why you should be careful with ICUI, check out our full research report (it’s free).
One Stock to Buy:
DoorDash (DASH)
Trailing 12-Month Free Cash Flow Margin: 11.9%
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ: DASH) operates an on-demand food delivery platform.
Why Is DASH a Good Business?
- Orders have grown by 22.9% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Expected revenue growth of 25.6% for the next year suggests its market share will rise
- Additional sales over the last three years increased its profitability as the 179% annual growth in its earnings per share outpaced its revenue
DoorDash is trading at $154.56 per share, or 16.7x forward EV/EBITDA. Is now a good 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.
