1 Cash-Producing Stock to Keep an Eye On and 2 We Ignore

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

Not all companies are created equal, and StockStory is here to surface the ones with real upside. That said, 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:

Tutor Perini (TPC)

Trailing 12-Month Free Cash Flow Margin: 15.5%

Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services.

Why Are We Hesitant About TPC?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle
2. High input costs result in an inferior gross margin of 6.7% that must be offset through higher volumes
3. Performance over the past five years was negatively impacted by new share issuances as its earnings per share fell by 18.8% annually while its revenue was flat

At $67.17 per share, Tutor Perini trades at 15.3x forward P/E. Read our free research report to see why you should think twice about including TPC in your portfolio.

Dentsply Sirona (XRAY)

Trailing 12-Month Free Cash Flow Margin: 2.2%

With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide.

Why Do We Pass on XRAY?

1. Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
2. Push for growth has led to negative returns on capital, signaling value destruction, and its shrinking returns suggest its past profit sources are losing steam
3. Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value

Dentsply Sirona’s stock price of $11.30 implies a valuation ratio of 7.5x forward P/E. Check out our free in-depth research report to learn more about why XRAY doesn’t pass our bar.

One Stock to Watch:

Wabtec (WAB)

Trailing 12-Month Free Cash Flow Margin: 11.8%

Also known as Wabtec, Westinghouse Air Brake Technologies (NYSE:WAB) provides equipment, systems, and related software for the railway industry.

Why Do We Like WAB?

1. Operating profits and efficiency rose over the last five years as it benefited from some fixed cost leverage
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. WAB is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

Wabtec is trading at $209.92 per share, or 21.9x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

Stocks We Like Even More

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 Growth Stocks for this month. 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.