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. Keeping that in mind, here is one cash-producing company that leverages its financial strength to beat its competitors and two that may struggle to keep up.
Two Stocks to Sell:
Boston Beer (SAM)
Trailing 12-Month Free Cash Flow Margin: 10.8%
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Why Is SAM Not Exciting?
- Sales trends were unexciting over the last three years as its 1.6% annual growth was below the typical consumer staples company
- Subscale operations are evident in its revenue base of $2.05 billion, meaning it has fewer distribution channels than its larger rivals
- Estimated sales decline of 4.4% for the next 12 months implies a challenging demand environment
Boston Beer is trading at $197.75 per share, or 23.1x forward P/E. Dive into our free research report to see why there are better opportunities than SAM.
Azenta (AZTA)
Trailing 12-Month Free Cash Flow Margin: 4.2%
Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ:AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.
Why Is AZTA Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.2% annually over the last five years
- Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
- Free cash flow margin dropped by 22.5 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Azenta’s stock price of $28.93 implies a valuation ratio of 40.2x forward P/E. Check out our free in-depth research report to learn more about why AZTA doesn’t pass our bar.
One Stock to Watch:
SentinelOne (S)
Trailing 12-Month Free Cash Flow Margin: 1.8%
Built on the principle of "fighting machine with machine," SentinelOne (NYSE:S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.
Why Are We Fans of S?
- Customers view its software as mission-critical to their operations as its ARR has averaged 26.3% growth over the last year
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Above-average gross margin of 75% gives it the ability to invest in R&D and run marketing campaigns
At $16.79 per share, SentinelOne trades at 5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 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-micro-cap company Kadant (+351% 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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