3 Cash-Producing Stocks Worth Your Attention

Businesses with strong free cash flow tend to be more adaptable and resilient. Some of these companies shine bright by using their cash wisely to strengthen their market positions.

Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are three cash-producing companies that excel at turning cash into shareholder value.

Stride (LRN)

Trailing 12-Month Free Cash Flow Margin: 15.5%

Formerly known as K12, Stride (NYSE:LRN) is an education technology company providing education solutions through digital platforms.

Why Do We Love LRN?

1. Number of enrollments has surged, pointing to elevated demand
2. Additional sales over the last two years increased its profitability as the 56.8% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin grew by 8.6 percentage points over the last five years, giving the company more chips to play with

At $143.56 per share, Stride trades at 18.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Globus Medical (GMED)

Trailing 12-Month Free Cash Flow Margin: 20.1%

With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE:GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Why Does GMED Stand Out?

1. Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
2. Estimated revenue growth of 14.2% for the next 12 months implies its momentum over the last two years will continue
3. Earnings per share have massively outperformed its peers over the last five years, increasing by 20.2% annually

Globus Medical is trading at $60.48 per share, or 17.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free for active Edge members.

EXL (EXLS)

Trailing 12-Month Free Cash Flow Margin: 14.1%

Originally founded as an outsourcing company in 1999 before evolving into a technology-focused enterprise, EXL (NASDAQ:EXLS) provides data analytics and AI-powered digital operations solutions that help businesses transform their operations and make better decisions.

Why Is EXLS a Top Pick?

1. Market share has increased this cycle as its 15.1% annual revenue growth over the last five years was exceptional
2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27% exceeded its revenue gains over the last five years
3. Strong free cash flow margin of 11.5% enables it to reinvest or return capital consistently

EXL’s stock price of $43.07 implies a valuation ratio of 21.8x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out 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 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 Tecnoglass (+1,754% 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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