1 Cash-Producing Stock with Impressive Fundamentals and 2 We Avoid

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. That said, here is one cash-producing company that reinvests wisely to drive long-term success and two best left off your watchlist.

Two Stocks to Sell:

JLL (JLL)

Trailing 12-Month Free Cash Flow Margin: 3.6%

Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE:JLL) is a company specializing in real estate advisory and investment management services.

Why Is JLL Risky?

1. Annual sales growth of 8.1% over the last five years lagged behind its consumer discretionary peers as its large revenue base made it difficult to generate incremental demand
2. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 2.8% for the last two years
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

JLL’s stock price of $346.50 implies a valuation ratio of 17.5x forward P/E. Check out our free in-depth research report to learn more about why JLL doesn’t pass our bar.

Omnicell (OMCL)

Trailing 12-Month Free Cash Flow Margin: 9.5%

Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.

Why Do We Pass on OMCL?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 9.5 percentage points
3. Earnings per share fell by 5.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable

At $45.74 per share, Omnicell trades at 25.9x forward P/E. Dive into our free research report to see why there are better opportunities than OMCL.

One Stock to Buy:

Abercrombie and Fitch (ANF)

Trailing 12-Month Free Cash Flow Margin: 7.4%

Founded as an outdoor and sporting brand, Abercrombie & Fitch (NYSE:ANF) evolved to become a specialty retailer that sells its own brand of fashionable clothing to young adults.

Why Should You Buy ANF?

1. Comparable store sales rose by 11.9% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
2. Collection of products is difficult to replicate at scale and results in a best-in-class gross margin of 63.3%
3. Share buybacks catapulted its annual earnings per share growth to 189%, which outperformed its revenue gains over the last three years

Abercrombie and Fitch is trading at $126.84 per share, or 12.2x 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 9 Market-Beating Stocks. 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 Exlservice (+354% 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.