1 Cash-Producing Stock on Our Buy List and 2 We Question

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 face some trouble.

Two Stocks to Sell:

Adtalem (ATGE)

Trailing 12-Month Free Cash Flow Margin: 19.5%

Formerly known as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) is a global provider of workforce solutions and educational services.

Why Do We Think ATGE Will Underperform?

1. Annual revenue growth of 13.9% over the last five years was below our standards for the consumer discretionary sector
2. Projected 2.8 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
3. ROIC of 10.6% reflects management’s challenges in identifying attractive investment opportunities

Adtalem’s stock price of $101.10 implies a valuation ratio of 12.4x forward P/E. Read our free research report to see why you should think twice about including ATGE in your portfolio.

Astec (ASTE)

Trailing 12-Month Free Cash Flow Margin: 3.3%

Inventing the first ever double-barrel hot-mix asphalt plant, Astec (NASDAQ:ASTE) provides machines and equipment for building roads, processing raw materials, and producing concrete.

Why Do We Think Twice About ASTE?

1. Backlog has dropped by 28.2% on average over the past two years, suggesting it’s losing orders as competition picks up
2. High input costs result in an inferior gross margin of 23.9% that must be offset through higher volumes
3. Cash-burning history makes us doubt the long-term viability of its business model

Astec is trading at $56.35 per share, or 18.5x forward P/E. Check out our free in-depth research report to learn more about why ASTE doesn’t pass our bar.

One Stock to Buy:

Huron (HURN)

Trailing 12-Month Free Cash Flow Margin: 10.6%

Founded in 2002 during a time of significant regulatory change in corporate America, Huron Consulting Group (NASDAQ:HURN) is a professional services company that helps organizations develop growth strategies, optimize operations, and implement digital transformation solutions.

Why Is HURN a Top Pick?

1. Impressive 12.3% annual revenue growth over the last five years indicates it’s winning market share this cycle
2. Free cash flow margin grew by 9 percentage points over the last five years, giving the company more chips to play with
3. Historical investments are beginning to pay off as its returns on capital are growing

At $145.68 per share, Huron trades at 18.7x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.