2 Cash-Producing Stocks Worth Investigating and 1 We Brush Off

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 reinvest wisely to drive long-term success and one best left off your watchlist.

One Stock to Sell:

Molson Coors (TAP)

Trailing 12-Month Free Cash Flow Margin: 10.6%

Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE:TAP) is a global brewing giant with a rich history dating back more than two centuries.

Why Are We Bearish on TAP?

1. Falling unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
2. Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 34.6 percentage points
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities, and its falling returns suggest its earlier profit pools are drying up

Molson Coors’s stock price of $42.46 implies a valuation ratio of 8.8x forward P/E. Check out our free in-depth research report to learn more about why TAP doesn’t pass our bar.

Two Stocks to Watch:

Nvidia (NVDA)

Trailing 12-Month Free Cash Flow Margin: 47%

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Why Should You Buy NVDA?

1. Annual revenue growth of 78.3% over the last two years was superb and indicates its market share increased during this cycle
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 81.5% exceeded its revenue gains over the last five years
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its growing cash flow gives it even more resources to deploy

At $197.64 per share, Nvidia trades at 19.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Noble Corporation (NE)

Trailing 12-Month Free Cash Flow Margin: 9.3%

With origins dating back over a century to 1921, Noble Corporation (NYSE:NE) operates drilling rigs that oil and gas companies charter to drill wells in deep ocean waters and shallow seas.

Why Is NE Interesting?

1. Impressive 29.7% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Revenue base of $3.07 billion gives it economies of scale and some negotiating power with suppliers
3. EBITDA margin expanded by 16.6 percentage points over the last five years as it scaled and became more efficient

Noble Corporation is trading at $39.23 per share, or 39.2x forward P/E. Is now a good 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 meet 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 ServiceNow (+164% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.