2 Cash-Producing Stocks to Target This Week and 1 Facing Challenges

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 are two cash-producing companies that leverage their financial strength to beat the competition and one best left off your watchlist.

One Stock to Sell:

WEX (WEX)

Trailing 12-Month Free Cash Flow Margin: 11.8%

Originally founded in 1983 as Wright Express to serve the fleet card market, WEX (NYSE:WEX) provides payment processing and business solutions across fleet management, employee benefits, and corporate payments sectors.

Why Does WEX Give Us Pause?

1. Annual revenue growth of 2.2% over the last two years was below our standards for the financials sector
2. Earnings per share lagged its peers over the last two years as they only grew by 4.5% annually

WEX is trading at $157.61 per share, or 8.7x forward P/E. Check out our free in-depth research report to learn more about why WEX doesn’t pass our bar.

Two Stocks to Buy:

JFrog (FROG)

Trailing 12-Month Free Cash Flow Margin: 26.8%

Named after the amphibian that continuously evolves from egg to tadpole to adult, JFrog (NASDAQ:FROG) provides a platform that helps organizations securely create, store, manage, and distribute software packages across any system.

Why Should You Buy FROG?

1. Ability to secure long-term commitments with customers is evident in its 23.6% ARR growth over the last year
2. Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
3. Robust free cash flow margin of 26.8% gives it many options for capital deployment

JFrog’s stock price of $50.00 implies a valuation ratio of 10.1x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Netflix (NFLX)

Trailing 12-Month Free Cash Flow Margin: 20.9%

Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.

Why Is NFLX a Top Pick?

1. Global Streaming Paid Memberships have increased by an average of 15.7% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
2. Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 29.8%, and its rise over the last few years was fueled by some leverage on its fixed costs
3. Free cash flow margin expanded by 15.8 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends

At $76.95 per share, Netflix trades at 19.6x forward EV/EBITDA. Is now the time to initiate a position? See for yourself 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 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.