1 Cash-Producing Stock to Own for Decades and 2 We Ignore

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. Keeping that in mind, here is one cash-producing company that excels at turning cash into shareholder value and two best left off your watchlist.

Two Stocks to Sell:

Rush Enterprises (RUSHA)

Trailing 12-Month Free Cash Flow Margin: 9%

Headquartered in Texas, Rush Enterprises (NASDAQ:RUSH.A) provides truck-related services and solutions, including sales, leasing, parts, and maintenance for commercial vehicles.

Why Do We Steer Clear of RUSHA?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Estimated sales decline of 5.4% for the next 12 months implies an even more challenging demand environment
3. Sales over the last two years were less profitable as its earnings per share fell by 12% annually while its revenue was flat

At $64.66 per share, Rush Enterprises trades at 17.8x forward P/E. If you’re considering RUSHA for your portfolio, see our FREE research report to learn more.

ASGN (ASGN)

Trailing 12-Month Free Cash Flow Margin: 7.1%

Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN (NYSE:ASGN) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.

Why Is ASGN Risky?

1. Sales tumbled by 6.2% annually over the last two years, showing market trends are working against its favor during this cycle
2. Estimated sales for the next 12 months are flat and imply a softer demand environment
3. Earnings per share were flat over the last five years while its revenue grew, showing its incremental sales were less profitable

ASGN is trading at $51.15 per share, or 10.1x forward P/E. Dive into our free research report to see why there are better opportunities than ASGN.

One Stock to Buy:

Federal Signal (FSS)

Trailing 12-Month Free Cash Flow Margin: 10.7%

Developing sirens that warned of air raid attacks or fallout during the Cold War, Federal Signal (NYSE:FSS) provides safety and emergency equipment for government agencies, municipalities, and industrial companies.

Why Will FSS Outperform?

1. Annual revenue growth of 12.3% over the past five years was outstanding, reflecting market share gains this cycle
2. Exciting sales outlook for the upcoming 12 months calls for 15.4% growth, an acceleration from its two-year trend
3. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 27.9% annually, topping its revenue gains

Federal Signal’s stock price of $114.56 implies a valuation ratio of 24.8x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 5 Strong Momentum Stocks for this week. 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.