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 is one cash-producing company that reinvests wisely to drive long-term success and two that may struggle to keep up.
Trailing 12-Month Free Cash Flow Margin: 1.7%
Started in 1998 as a platform to broadcast press conferences, ON24’s (NYSE:ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers.
Why Should You Sell ONTF?
ON24’s stock price of $5 implies a valuation ratio of 1.4x forward price-to-sales. To fully understand why you should be careful with ONTF, check out our full research report (it’s free).
Trailing 12-Month Free Cash Flow Margin: 16.7%
With a portfolio spanning from vascular access catheters to minimally invasive surgical tools, Teleflex (NYSE:TFX) designs, manufactures, and supplies single-use medical devices used in critical care and surgical procedures across hospitals worldwide.
Why Does TFX Fall Short?
At $135.49 per share, Teleflex trades at 8.9x forward price-to-earnings. Check out our free in-depth research report to learn more about why TFX doesn’t pass our bar.
Trailing 12-Month Free Cash Flow Margin: 17.4%
Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE:CL) is a consumer products company that focuses on personal, household, and pet products.
Why Do We Watch CL?
Colgate-Palmolive is trading at $94.08 per share, or 25x forward price-to-earnings. Is now the right time to buy? Find out in our full research report, it’s free.
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking 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 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
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