2 Cash-Producing Stocks on Our Buy List and 1 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.

Luckily for you, we built StockStory to help you separate the good from the bad. That said, 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:

Jacobs Solutions (J)

Trailing 12-Month Free Cash Flow Margin: 9.5%

With a workforce of approximately 45,000 professionals tackling complex challenges from water scarcity to cybersecurity, Jacobs Solutions (NYSE:J) provides engineering, consulting, and technical services focused on infrastructure, sustainability, and advanced technology solutions.

Why Are We Bearish on J?

1. Annual sales declines of 6.2% for the past five years show its products and services struggled to connect with the market during this cycle
2. Earnings per share have contracted by 6.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. ROIC of 8.2% reflects management’s challenges in identifying attractive investment opportunities

At $145.86 per share, Jacobs Solutions trades at 18.1x forward P/E. Check out our free in-depth research report to learn more about why J doesn’t pass our bar.

Two Stocks to Buy:

HEICO (HEI)

Trailing 12-Month Free Cash Flow Margin: 18.9%

Founded in 1957, HEICO (NYSE:HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.

Why Is HEI a Top Pick?

1. Annual revenue growth of 18.3% over the past two years was outstanding, reflecting market share gains this cycle
2. Earnings per share grew by 32.7% annually over the last two years, massively outpacing its peers
3. Robust free cash flow margin of 17.4% gives it many options for capital deployment

HEICO is trading at $357.50 per share, or 57.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

GE Vernova (GEV)

Trailing 12-Month Free Cash Flow Margin: 30.1%

Born from the energy business of industrial giant General Electric in a 2023 spin-off, GE Vernova (NYSE:GEV) designs, manufactures, and services power generation equipment and grid technologies to help customers build more reliable and sustainable electric systems.

Why Do We Love GEV?

1. Impressive 10.7% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. Share repurchases over the last two years enabled its annual earnings per share growth of 169% to outpace its revenue gains
3. Free cash flow margin increased by 45.3 percentage points over the last four years, giving the company more capital to invest or return to shareholders

GE Vernova’s stock price of $988.80 implies a valuation ratio of 46.5x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% 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.