1 Cash-Producing Stock to Own for Decades 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.

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 reinvests wisely to drive long-term success and two that may struggle to keep up.

Two Stocks to Sell:

Concrete Pumping (BBCP)

Trailing 12-Month Free Cash Flow Margin: 8%

Going public via SPAC in 2018, Concrete Pumping (NASDAQ:BBCP) is a provider of concrete pumping and waste management services in the United States and the United Kingdom.

Why Do We Avoid BBCP?

1. Absence of organic revenue growth over the past two years suggests it may have to lean into acquisitions to drive its expansion
2. Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
3. 7.8 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position

At $7.07 per share, Concrete Pumping trades at 53.8x forward P/E. Check out our free in-depth research report to learn more about why BBCP doesn’t pass our bar.

Allison Transmission (ALSN)

Trailing 12-Month Free Cash Flow Margin: 20.5%

Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators.

Why Are We Hesitant About ALSN?

1. Sales trends were unexciting over the last two years as its 1.5% annual growth was below the typical industrials company
2. Projected sales decline of 4.7% for the next 12 months points to a tough demand environment ahead
3. Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 6.3% annually

Allison Transmission is trading at $101.58 per share, or 13.6x forward P/E. To fully understand why you should be careful with ALSN, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

Mastercard (MA)

Trailing 12-Month Free Cash Flow Margin: 51.8%

Recognizable by its iconic "Priceless" advertising campaign that has run in over 120 countries, Mastercard (NYSE:MA) operates a global payments network that connects consumers, financial institutions, merchants, and businesses, enabling electronic transactions and providing payment solutions.

Why Is MA a Good Business?

1. Annual revenue growth of 15.1% over the last five years was superb and indicates its market share increased during this cycle
2. Share repurchases have increased shareholder returns as its annual earnings per share growth of 19% exceeded its revenue gains over the last five years
3. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

Mastercard’s stock price of $579.75 implies a valuation ratio of 30.9x forward P/E. 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

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 6 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.