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. Keeping that in mind, here is one cash-producing company that excels at turning cash into shareholder value and two best left off your watchlist.
Two Stocks to Sell:
Dropbox (DBX)
Trailing 12-Month Free Cash Flow Margin: 37.8%
Originally named after the founders' tendency to "drop" files into a shared folder, Dropbox (NASDAQ:DBX) provides a content collaboration platform that helps individuals and teams store, organize, share, and work on files from anywhere.
Why Should You Sell DBX?
- Customers had second thoughts about committing to its platform over the last year as its billings plateaued
- Estimated sales for the next 12 months are flat and imply a softer demand environment
- Operating margin expansion of 4.2 percentage points over the last year shows the company optimized its expenses
At $33.99 per share, Dropbox trades at 3.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than DBX.
Oshkosh (OSK)
Trailing 12-Month Free Cash Flow Margin: 10.9%
Oshkosh (NYSE:OSK) manufactures specialty vehicles for the defense, fire, emergency, and commercial industry, operating various brand subsidiaries within each industry.
Why Are We Cautious About OSK?
- Backlog has dropped by 3.3% on average over the past two years, suggesting it’s losing orders as competition picks up
- High input costs result in an inferior gross margin of 16.3% that must be offset through higher volumes
- Earnings per share have contracted by 11.9% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
Oshkosh’s stock price of $150.25 implies a valuation ratio of 11.3x forward P/E. To fully understand why you should be careful with OSK, check out our full research report (it’s free).
One Stock to Buy:
Samsara (IOT)
Trailing 12-Month Free Cash Flow Margin: 13.6%
From sensors on vehicles to AI-powered cameras that help prevent accidents, Samsara (NYSE:IOT) is a cloud-based Internet of Things platform that helps businesses improve the safety, efficiency, and sustainability of their physical operations.
What Makes IOT Stand Out?
- Customers view its software as mission-critical to their operations as its ARR has averaged 29.6% growth over the last year
- Projected revenue growth of 21.4% for the next 12 months suggests its momentum from the last two years will persist
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Samsara is trading at $39.65 per share, or 11.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.