1 Cash-Producing Stock Worth Your Attention and 2 to Be Wary Of
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 excels at turning cash into shareholder value and two that may face some trouble.
Trailing 12-Month Free Cash Flow Margin: 5.7%
Promoting a message of body positivity and inclusiveness, Torrid Holdings (NYSE:CURV) is a plus-size women's apparel and accessories retailer.
Why Should You Dump CURV?
Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and store experience
Subscale operations are evident in its revenue base of $1.10 billion, meaning it has fewer distribution channels than its larger rivals
Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
At $5.51 per share, Torrid trades at 25.1x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than CURV.
Trailing 12-Month Free Cash Flow Margin: 1.7%
Based in Long Island City, Altice USA (NYSE:ATUS) is a telecommunications company offering cable, internet, telephone, and television services across the United States.
Why Do We Avoid ATUS?
Sluggish trends in its broadband subscribers suggest customers aren't adopting its solutions as quickly as the company hoped
Sales were less profitable over the last five years as its earnings per share fell by 25.1% annually, worse than its revenue declines
7× net-debt-to-EBITDA ratio shows it's overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
Altice's stock price of $2.28 implies a valuation ratio of 0.3x forward EV-to-EBITDA. To fully understand why you should be careful with ATUS, check out our full research report (it's free).
Trailing 12-Month Free Cash Flow Margin: 11.7%
Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations.
Why Could WK Be a Winner?
ARR trends over the last year show it's maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
Projected revenue growth of 17.1% over the next 12 months is higher than most peers
Software is difficult to replicate at scale and results in a top-tier gross margin of 76.7%
Workiva is trading at $69.71 per share, or 4.5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it's free.
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum 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 United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Where Will ChargePoint Stock Be in 1 Year?
ChargePoint's revenues are still declining in this challenging market. Its margins are improving, and a cyclical turnaround could be around the corner. Its stock looks undervalued relative to its growth potential. 10 stocks we like better than ChargePoint › ChargePoint (NYSE: CHPT), the leading builder of electric vehicle (EV) charging stations in North America and Europe, posted its latest earnings report on June 4. For the first quarter of fiscal 2026, which ended on April 30, the company's revenue fell 9% year over year to $97.6 million, missing analysts' expectations by $2.9 million. It narrowed its net loss from $71.8 million to $57.1 million, or $0.12 per share, which cleared the consensus forecast by a penny. ChargePoint's stock rallied after that mixed earnings report, but it's still down about 60% over the past 12 months. Will it stabilize and recover over the following year? ChargePoint ended its first quarter with more than 352,000 charging ports, including over 35,000 DC fast chargers, under its direct management. Its roaming partnerships also grant its customers access to more than 1.25 million charging ports across the world. ChargePoint mainly sells connected charging stations to residential and commercial properties that want to host their own chargers and set their own prices. It provides those hosts with network access, billing, and customer support services. That sets it apart from Tesla's Superchargers, which mainly serve as extensions of the automaker and offer fewer connected and customizable features. ChargePoint grew rapidly in fiscal 2022 and fiscal 2023 (which ended in January 2023), as EV sales surged in the post-pandemic market. But in fiscal 2024 and fiscal 2025, its growth stalled out as rising interest rates chilled the EV market and drove its residential and commercial customers to postpone their installations of new charging stalls. But in fiscal 2025, its adjusted gross, operating, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins all improved as it narrowed its net loss. Its margins continued to expand in the first quarter of fiscal 2026, even as its revenue declined. Metric FY 2022 FY 2023 FY 2024 FY 2025 Q1 2026 Revenue $242 million $468 million $507 million $417 million $98 million Growth (YOY) 65% 93% 8% (18%) (9%) Adjusted gross margin 24% 20% 8% 26% 31% Operating margin (110%) (73%) (89%) (61%) (55%) Net income (loss) ($299 million) ($345 million) ($458 million) ($283 million) ($57 million) Adjusted EBITDA N/A ($217 million) ($273 million) ($117 million) ($23 million) Data source: ChargePoint. YOY = Year-over-year. FY = fiscal year. EBITDA = earnings before interest, taxes, depreciation, and amortization. ChargePoint attributes those margin improvements to the growth of its higher-margin subscription and software services -- which offset the lower margins of its chargers -- a big reduction in its inventories, and sweeping cost-cutting initiatives. ChargePoint expects to generate $90 million to $100 million in revenue in the second quarter, which would represent a decline of 8% to 17% from a year ago. During the earnings call, CFO Mansi Khetani said the company was "guiding with caution due to the continued changes in the macro environment, including tariff uncertainty" and its focus on integrating its charging stalls with Eaton's electrical grid solutions through a new one-stop shop partnership. ChargePoint didn't provide a full-year revenue outlook. However, it reiterated its goal of achieving a positive adjusted EBITDA in a single quarter of fiscal 2026. Analysts expect its revenue to come in nearly flat for the full year, which implies its revenue growth will improve in the second half of the year as the macroenvironment warms up and the EV market stabilizes. They expect its annual adjusted EBITDA to improve to negative $63 million. ChargePoint's growth may seem anemic right now, but it still has enough liquidity to ride out the near-term headwinds. It ended the first quarter with $196 million in cash and cash equivalents, it hasn't drawn a single dollar from its $150 million revolving credit facility, and it won't face any debt maturities until 2028. For fiscal 2027, analysts expect ChargePoint's revenue to rise 29% to $537 million with a negative adjusted EBITDA of $16 million. For fiscal 2028, they expect its revenue to grow 33% to $713 million with a positive adjusted EBITDA of $67 million. We should take those optimistic estimates with a grain of salt, but its cyclical downturn could represent a good buying opportunity for investors who can tune out the near-term noise. With an enterprise value of $465 million, it looks extremely undervalued at just over 1 times this year's sales. If ChargePoint meets analysts' expectations and trades at just 2 times its forward sales by the beginning of fiscal 2027, its stock price could easily rally more than 130% over the next 12 months. Before you buy stock in ChargePoint, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ChargePoint wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Where Will ChargePoint Stock Be in 1 Year? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Dow Jones Futures Rise: Trump Warns Musk Of 'Serious Consequences'; China Trade Talks Loom
The S&P 500 is nearing recodr highs. Palantir is back in a buy area. Tesla investors should focus on this amid the Trump-Musk feud.
Yahoo
2 hours ago
- Yahoo
Vanishing immigration is the ‘real story' for the economy and a bigger supply shock than tariffs, analysts says
Protests over ICE raids in the Los Angeles area this weekend highlight the crackdown on undocumented workers at businesses and the overall impact of immigration, legal or otherwise, on the economy. The collapse in immigration represents a bigger negative supply shock than President Donald Trump's tariffs do, Deutsche Bank said. President Donald Trump's mobilization of California National Guard troops to protect immigration officers from protesters highlights his crackdown on undocumented workers and the economic impact of a sudden drop in labor supply. Protests in Los Angeles began on Friday, when armed federal agents clad in camouflage uniforms, tactical vests, and helmets arrived in armored vehicles to carry out a raid on a clothing wholesaler. It was the latest in a series of similar high-profile operations at businesses around the country. Also on Friday, the Labor Department issued its monthly jobs report, which showed the U.S. workforce shrank in May as the number of foreign-born workers saw the biggest back-to-back declines since 2020. That comes after a surge in immigration during the Biden administration helped boost economic activity. According to a Deutsche Bank analysis of data from U.S. Customs and Border Patrol, the number of encounters at the Southwest border has plunged to 12,000 people per month since Trump's inauguration from an average of 200,000 during the year-and-a-half period between January 2022 and June 2024. 'While everyone is focused on the impact of tariffs, the real story for the US economy is the collapse in immigration: down more than 90% compared to the run rate of previous years, equivalent to a slowing in labour force growth of more than 2 million people,' George Saravelos, head of FX research at Deutsche Bank, wrote in a note on Friday. 'This represents a far more sustained negative supply shock for the economy than tariffs.' While Trump has pointed to weaker payroll growth as reasons for the Federal Reserve to cut interest rates, his immigration crackdown gives the central bank, which is already wary of the inflationary effect of his tariffs, another reason to wait and see. That's because a workforce that is growing more slowly doesn't need as much hiring to absorb the additional labor supply. In fact, even as average payroll gains have cooled to 124,000 a month this year from 250,000 in 2024, the jobless rate has hovered around 4.2% since last summer. Wall Street sees a lower breakeven rate for job growth, or the amount of hiring need to keep the unemployment rate steady. By the end of this year, that pace should fall to 90,000 per month from 170,000 now and 210,000 last year, according to Morgan Stanley, which cited deportations and slower immigration. Deutsche Bank warned the collapse of immigration will have broader implications in financial markets, including on the dollar, which has already been battered by Trump's aggressive tariff campaign. 'Last year we were writing that the US was benefitting from a goldilocks mix of high employment growth and low wages precisely because of high immigration numbers,' Saravelos said. 'If recent immigration trends continue, it must follow that over the course of the year the reverse will happen. As the 2022 energy shock showed, a negative supply shock is not good news for a currency.' This story was originally featured on
