2 Cash-Producing Stocks for Long-Term Investors and 1 to Steer Clear Of
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 are two cash-producing companies that excel at turning cash into shareholder value and one best left off your watchlist.
Trailing 12-Month Free Cash Flow Margin: 9.1%
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE:SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Why Does SAM Worry Us?
Muted 1.7% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers
Smaller revenue base of $2.04 billion means it hasn't achieved the economies of scale that some industry juggernauts enjoy
Demand will likely fall over the next 12 months as Wall Street expects flat revenue
Boston Beer is trading at $231.24 per share, or 22.7x forward P/E. To fully understand why you should be careful with SAM, check out our full research report (it's free).
Trailing 12-Month Free Cash Flow Margin: 22.5%
Founded in 1949, Grand Canyon Education (NASDAQ:LOPE) is an educational services provider known for its operation at Grand Canyon University.
Why Are We Positive On LOPE?
Disciplined cost controls and effective management resulted in a strong two-year operating margin of 26.5%
ROIC punches in at 30.2%, illustrating management's expertise in identifying profitable investments, and its rising returns show it's making even more lucrative bets
At $192.01 per share, Grand Canyon Education trades at 21.9x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free.
Trailing 12-Month Free Cash Flow Margin: 26.7%
With roots dating back to 1891 and a portfolio that includes the blockbuster cancer immunotherapy Keytruda, Merck (NYSE:MRK) develops and sells prescription medicines, vaccines, and animal health products across oncology, infectious diseases, cardiovascular, and other therapeutic areas.
Why Are We Fans of MRK?
Unparalleled scale of $63.92 billion in revenue gives it negotiating leverage and staying power in an industry with high barriers to entry
Free cash flow margin expanded by 11.2 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
Industry-leading 15.6% return on capital demonstrates management's skill in finding high-return investments
Merck's stock price of $76.27 implies a valuation ratio of 8.4x forward P/E. 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 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free.
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San Francisco Chronicle
26 minutes ago
- San Francisco Chronicle
Putin's uncompromising demands emerge after the latest round of Russia-Ukraine peace talks
Russia took weeks to present to Ukraine with a 'memorandum' setting out its conditions for a ceasefire, as well as key guidelines for a comprehensive treaty to end the more than 3-year-old war. To practically no one's surprise, it's a list of the Kremlin's longstanding, maximalist demands that Kyiv and its Western allies see as nonstarters. Ukraine had set its negotiating stance before Monday's direct peace talks in Istanbul, emphasizing its readiness to declare a 30-day ceasefire immediately without preconditions that was proposed by U.S. President Donald Trump. Kyiv reaffirmed its refusal to abandon a bid for NATO membership and rejected acknowledgment of Russia's annexation of any of its regions. Both sides have established mutually exclusive red lines that make any quick deal unlikely. Moscow's demands, published in the Russian media, make it clear that President Vladimir Putin is determined to ensure the fulfillment of the goals in Ukraine he set when he launched the invasion on Feb. 24, 2022. Key points of the Russian and Ukrainian documents: Russia offered Ukraine a choice of two options for establishing a 30-day ceasefire. One option is that Ukraine must withdraw its forces from Donetsk, Luhansk, Zaporizhzhia and Kherson — the four regions Moscow illegally annexed in September 2022 but never fully captured. The second option described by Moscow as the 'package' proposal, presses Ukraine to halt its mobilization efforts and freeze Western arms deliveries — conditions that were suggested earlier by Putin. On top of that, the document also demands that Ukraine begin demobilizing its military, halt any redeployment of forces and ban the presence of any third-country forces on its soil. The 'package' option further proposes that Ukraine end martial law and hold elections, after which the two countries could sign a comprehensive peace treaty. Russia's terms for a comprehensive peace treaty The Russian document declares that conditions for peace must include the 'international legal recognition' of Moscow's 2014 annexation of Ukraine's Crimean Peninsula and its 2022 annexation of the Donetsk, Luhansk, Kherson and Zaporizhzhia regions. It says a future peace treaty should have Ukraine declare its neutral status between Russia and the West, and abandon its bid to join NATO. The document demands that Ukraine limit the size of its armed forces, recognize Russian as an official language on par with Ukrainian, ban 'glorification and propaganda of Nazism and neo-Nazism' and dissolve nationalist groups -– conditions reflecting Putin's goals from the outset of his invasion. The false allegations that neo-Nazi groups were shaping Ukraine's politics under President Volodymyr Zelenskyy, who is Jewish, have been vehemently dismissed by Kyiv and its Western allies. In Russia's view, a comprehensive peace treaty should also see both countries lift all sanctions and restrictions, abandon any claims to compensation for wartime damage, resume trade and communications, and reestablish diplomatic ties. It also suggests that the peace treaty between Russian and Ukraine be endorsed by a resolution of the U.N. Security Council. Ukraine's ceasefire position also remains firm The memorandum that Ukraine submitted to Moscow before the talks and shared with its allies emphasized the need for a full and unconditional 30-day ceasefire to set stage for peace negotiations. It reaffirmed Ukraine's consistent rejection of Russian demands for neutral status as an attack on its sovereignty, declaring it is free to choose its alliances and adding that its NATO membership will depend on consensus with the alliance. It emphasized Kyiv's rejection of any restrictions on the size and other parameters of its armed forces, as well as curbs on the presence of foreign troops on its soil. Ukraine's memorandum also opposed recognizing any Russian territorial gains, while describing the current line of contact as a starting point in negotiations. The document noted the need for international security guarantees to ensure the implementation of peace agreements and prevent further aggression. The Ukrainian peace proposal also demanded the return of all deported and illegally displaced Ukrainian children and an 'all-for-all' prisoner exchange. The opposing positions make peace seem elusive The sharply conflicting demands leave little hope for any quick progress in talks. By maintaining its maximalist demands, Moscow is seemingly unfazed by repeated threats of sanctions by the West or other pressure to make real concessions. Some observers see the Russian memorandum as a way by Moscow to formalize its negotiation position. 'Even an unsigned document gives the Kremlin a firmer diplomatic foothold,' said Moscow-based defense analyst Sergei Poletaev. Tatiana Stanovaya of the Carnegie Russia Eurasia Center noted that the document reflects Putin's key goal of of securing a 'friendly' Ukraine without a full-fledged military or ties of any kind with its Western allies. She noted the Russian document offers Ukraine a choice between the two options because Moscow knows that a Ukrainian withdrawal from the four regions "is not viable and seeks to push Kyiv toward the second as the primary course.' At the same time, Moscow's memorandum appears to indicate that 'Russia is open to considering leaving parts of the annexed regions that it does not control to Ukraine.' Stanovaya said Moscow's maximalist demands mean that 'the fighting is set to continue, even if bilateral interactions persist.'
Yahoo
27 minutes ago
- Yahoo
Americans Are Growing Less Interested in Buying Electric Vehicles, Study Says
"Hearst Magazines and Yahoo may earn commission or revenue on some items through these links." There has never been a better selection of electric vehicles on dealer lots than there is today. In the last four years alone, some 75 new all-electric models have arrived in the United States across the many automotive brands on the market. Yet while that might seem like a positive sign for the emerging segment, a recent study by AAA suggests American interest in EVs is at its lowest rate since 2019. The study, which looked into the likelihood of purchasing an EV and the factors behind that decision, was completed in March of this year and spanned 1128 interviews. AAA found that only 16% of U.S. adults reported being 'very likely' or 'likely' to purchase an EV as their next car — the lowest that figure has been since before the COVID-19 pandemic. Conversely, the percentage of adults who stated they are 'unlikely' or 'very unlikely' to purchase an EV as their next vehicle has grown from 51% to 63% in the last four years. The survey suggests there is still quite a bit of hesitation surrounding EVs when it comes to the buying public, with a few specific areas of concern. AAA says that high battery repair costs (62%) and a higher purchase price (59%) were the two most-cited reasons for not considering an EV purchase. Other respondents noted a perceived inability for EVs to handle long travel (57%), which seemingly relates to general charging fears. Respondents also pointed to a lack of convenient public charging (56%) and a fear of being left with a flat battery on the roadside (55%). Additionally, 27% of respondents claimed to have issues installing charging at their own residence. 'Since we began tracking interest in fully electric vehicles, we've seen some variability,' said Greg Brannon, director of automotive engineering for AAA. 'While the automotive industry is committed to long-term electrification and providing a diverse range of models, underlying consumer hesitation remains.' The public's confidence in the growth of the EV segment seems to be slowing, as well. The study suggests that the number of people who believe that EVs will overtake gasoline vehicles in the next decade has dropped from 40% in 2022 to just 23% today. The recent J.D. Power 2025 U.S. Electric Vehicle Consideration Study — which covers people who intend to buy or lease a new vehicle in the next year, versus the AAA's study that is meant to be representative of the U.S. population overall — paints a bit of a different picture, however. The analytics firm says 24% of vehicle shoppers in the States are 'very likely' to consider purchasing an EV; an additional 35% said they are 'somewhat likely' to do so, which J.D Power says is unchanged from last year. That said, the firm did note that charging infrastructure remains a pain point with the majority of respondents (52%). J.D. Power's results do contrast the purchase price claims made by the AAA study to a certain degree, stating only 43% are staying away from EVs due to the high purchase prices. Considered together, the two studies suggest the American public as a whole isn't as jazzed about EVs as they might have once been. The market always speaks its mind, but such a rejection could have lasting impacts on the automotive industry and its key players. Where do you stand on the issue? What is the main thing pushing you towards or away from EV ownership? Let us know in the comments down below. You Might Also Like You Need a Torque Wrench in Your Toolbox Tested: Best Car Interior Cleaners The Man Who Signs Every Car
Yahoo
27 minutes ago
- Yahoo
Putin's uncompromising demands emerge after the latest round of Russia-Ukraine peace talks
Russia took weeks to present to Ukraine with a 'memorandum' setting out its conditions for a ceasefire, as well as key guidelines for a comprehensive treaty to end the more than 3-year-old war. To practically no one's surprise, it's a list of the Kremlin's longstanding, maximalist demands that Kyiv and its Western allies see as nonstarters. Ukraine had set its negotiating stance before Monday's direct peace talks in Istanbul, emphasizing its readiness to declare a 30-day ceasefire immediately without preconditions that was proposed by U.S. President Donald Trump. Kyiv reaffirmed its refusal to abandon a bid for NATO membership and rejected acknowledgment of Russia's annexation of any of its regions. Both sides have established mutually exclusive red lines that make any quick deal unlikely. Moscow's demands, published in the Russian media, make it clear that President Vladimir Putin is determined to ensure the fulfillment of the goals in Ukraine he set when he launched the invasion on Feb. 24, 2022. Key points of the Russian and Ukrainian documents: Moscow's conditions for a 30-day truce Russia offered Ukraine a choice of two options for establishing a 30-day ceasefire. One option is that Ukraine must withdraw its forces from Donetsk, Luhansk, Zaporizhzhia and Kherson — the four regions Moscow illegally annexed in September 2022 but never fully captured. The second option described by Moscow as the 'package' proposal, presses Ukraine to halt its mobilization efforts and freeze Western arms deliveries — conditions that were suggested earlier by Putin. On top of that, the document also demands that Ukraine begin demobilizing its military, halt any redeployment of forces and ban the presence of any third-country forces on its soil. The 'package' option further proposes that Ukraine end martial law and hold elections, after which the two countries could sign a comprehensive peace treaty. Russia's terms for a comprehensive peace treaty The Russian document declares that conditions for peace must include the 'international legal recognition' of Moscow's 2014 annexation of Ukraine's Crimean Peninsula and its 2022 annexation of the Donetsk, Luhansk, Kherson and Zaporizhzhia regions. It says a future peace treaty should have Ukraine declare its neutral status between Russia and the West, and abandon its bid to join NATO. The document demands that Ukraine limit the size of its armed forces, recognize Russian as an official language on par with Ukrainian, ban 'glorification and propaganda of Nazism and neo-Nazism' and dissolve nationalist groups -– conditions reflecting Putin's goals from the outset of his invasion. The false allegations that neo-Nazi groups were shaping Ukraine's politics under President Volodymyr Zelenskyy, who is Jewish, have been vehemently dismissed by Kyiv and its Western allies. In Russia's view, a comprehensive peace treaty should also see both countries lift all sanctions and restrictions, abandon any claims to compensation for wartime damage, resume trade and communications, and reestablish diplomatic ties. It also suggests that the peace treaty between Russian and Ukraine be endorsed by a resolution of the U.N. Security Council. Ukraine's ceasefire position also remains firm The memorandum that Ukraine submitted to Moscow before the talks and shared with its allies emphasized the need for a full and unconditional 30-day ceasefire to set stage for peace negotiations. It reaffirmed Ukraine's consistent rejection of Russian demands for neutral status as an attack on its sovereignty, declaring it is free to choose its alliances and adding that its NATO membership will depend on consensus with the alliance. It emphasized Kyiv's rejection of any restrictions on the size and other parameters of its armed forces, as well as curbs on the presence of foreign troops on its soil. Ukraine's memorandum also opposed recognizing any Russian territorial gains, while describing the current line of contact as a starting point in negotiations. The document noted the need for international security guarantees to ensure the implementation of peace agreements and prevent further aggression. The Ukrainian peace proposal also demanded the return of all deported and illegally displaced Ukrainian children and an 'all-for-all' prisoner exchange. It held the door open to gradual lifting of some of the sanctions against Russia if it abides by the agreeme The opposing positions make peace seem elusive The sharply conflicting demands leave little hope for any quick progress in talks. By maintaining its maximalist demands, Moscow is seemingly unfazed by repeated threats of sanctions by the West or other pressure to make real concessions. Some observers see the Russian memorandum as a way by Moscow to formalize its negotiation position. 'Even an unsigned document gives the Kremlin a firmer diplomatic foothold,' said Moscow-based defense analyst Sergei Poletaev. Tatiana Stanovaya of the Carnegie Russia Eurasia Center noted that the document reflects Putin's key goal of of securing a 'friendly' Ukraine without a full-fledged military or ties of any kind with its Western allies. She noted the Russian document offers Ukraine a choice between the two options because Moscow knows that a Ukrainian withdrawal from the four regions "is not viable and seeks to push Kyiv toward the second as the primary course.' At the same time, Moscow's memorandum appears to indicate that 'Russia is open to considering leaving parts of the annexed regions that it does not control to Ukraine.' Stanovaya said Moscow's maximalist demands mean that 'the fighting is set to continue, even if bilateral interactions persist.'
