2 Cash-Producing Stocks to Target This Week and 1 We Avoid

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.

Luckily for you, we built StockStory to help you separate the good from the bad. That said, here are two cash-producing companies that excel at turning cash into shareholder value and one that may struggle to keep up.

One Stock to Sell:

Masco (MAS)

Trailing 12-Month Free Cash Flow Margin: 11.1%

Headquartered just outside of Detroit, MI, Masco (NYSE:MAS) designs and manufactures home-building products such as glass shower doors, decorative lighting, bathtubs, and faucets.

Why Do We Avoid MAS?

1. Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
2. Projected sales growth of 2.3% for the next 12 months suggests sluggish demand
3. Diminishing returns on capital suggest its earlier profit pools are drying up

At $64.41 per share, Masco trades at 15.7x forward P/E. If you’re considering MAS for your portfolio, see our FREE research report to learn more.

Two Stocks to Watch:

Humana (HUM)

Trailing 12-Month Free Cash Flow Margin: 1.2%

With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.

Why Are We Positive On HUM?

1. Massive revenue base of $126.3 billion gives it meaningful leverage when negotiating reimbursement rates
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
3. Industry-leading 34.4% return on capital demonstrates management’s skill in finding high-return investments

Humana is trading at $252.86 per share, or 19.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

Genpact (G)

Trailing 12-Month Free Cash Flow Margin: 12.8%

Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE:G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.

Why Could G Be a Winner?

1. Strong free cash flow margin of 11.6% enables it to reinvest or return capital consistently
2. ROIC punches in at 18.2%, illustrating management’s expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities
3. Rising returns on capital show management is finding more attractive investment opportunities

Genpact’s stock price of $46.03 implies a valuation ratio of 11.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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 Exlservice (+354% 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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