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

A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

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 that may face some trouble.

Two Stocks to Sell:

UFP Industries (UFPI)

Trailing 12-Month Free Cash Flow Margin: 2.7%

Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ:UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.

Why Does UFPI Worry Us?

1. Declining unit sales over the past two years imply it may need to invest in improvements to get back on track
2. Earnings per share have dipped by 20.4% annually over the past two years, which is concerning because stock prices follow EPS over the long term
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

UFP Industries is trading at $100.97 per share, or 15.6x forward P/E. Dive into our free research report to see why there are better opportunities than UFPI.

ASGN (ASGN)

Trailing 12-Month Free Cash Flow Margin: 8.5%

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 Should You Dump ASGN?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.8% annually over the last two years
2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
3. Earnings per share fell by 1.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

At $54.25 per share, ASGN trades at 11.6x forward P/E. If you’re considering ASGN for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

Natera (NTRA)

Trailing 12-Month Free Cash Flow Margin: 5.3%

Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ:NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.

Why Are We Backing NTRA?

1. Products are reaching more customers as its tests processed averaged 21% growth over the past two years
2. Adjusted operating margin expanded by 38.7 percentage points over the last two years as it scaled and became more efficient
3. Free cash flow profile has moved into positive territory over the last five years, indicating the company has achieved financial self-sustainability

Natera’s stock price of $166 implies a valuation ratio of 10.4x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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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