1 Cash-Producing Stock for Long-Term Investors and 2 We Find Risky

Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.

Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here is one cash-producing company that leverages its financial strength to beat its competitors and two best left off your watchlist.

Two Stocks to Sell:

PlayStudios (MYPS)

Trailing 12-Month Free Cash Flow Margin: 13.4%

Founded by a team of former gaming industry executives, PlayStudios (NASDAQ:MYPS) offers free-to-play digital casino games.

Why Do We Think MYPS Will Underperform?

1. Demand for its offerings was relatively low as its number of daily active users has underwhelmed
2. Historically negative EPS is a worrisome sign for conservative investors and obscures its long-term earnings potential
3. Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 14.2% for the last two years

PlayStudios is trading at $0.60 per share, or 0.3x forward price-to-sales. If you’re considering MYPS for your portfolio, see our FREE research report to learn more.

Array (ARRY)

Trailing 12-Month Free Cash Flow Margin: 7.5%

Going public in October 2020, Array (NASDAQ:ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.

Why Should You Sell ARRY?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 9.8% annually over the last two years
2. Earnings per share have contracted by 9.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

At $10.00 per share, Array trades at 13.4x forward P/E. Check out our free in-depth research report to learn more about why ARRY doesn’t pass our bar.

One Stock to Watch:

Apple (AAPL)

Trailing 12-Month Free Cash Flow Margin: 23.7%

Creator of the iPhone and App Store, Apple (NASDAQ:AAPL) is a legendary developer of consumer electronics and software.

Why Should AAPL Be on Your Watchlist?

1. Apple's revenue base is so large because nearly everyone in the U.S. has an iPhone, but this is a double-edged sword. Growth must now come from upgrades, a harder pitch that has resulted in sluggish top-line performance recently.
2. Still, Apple's devices have endured for decades, speaking to its brand, design ethos, and technological chops. Its success is rare in the world of consumer electronics, which is fraught because of commoditization, competition, and obsolescence risk.
3. The company may not have the best gross margin because of its hardware orientation, but it still manages to produce elite operating and free cash flow margins. This shows it doesn’t need over-the-top marketing campaigns to convince people to buy its products.

Apple’s stock price of $260.90 implies a valuation ratio of 31.7x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.