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. Keeping that in mind, here are two cash-producing companies that excel at turning cash into shareholder value and one that may struggle to keep up.

One Stock to Sell:

American Express Global Business Travel (GBTG)

Trailing 12-Month Free Cash Flow Margin: 4.9%

Originally spun off from American Express in 2014 but maintaining the Amex GBT brand, Global Business Travel Group (NYSE: GBTG) provides end-to-end business travel and expense management solutions, connecting corporate clients with travel suppliers and offering specialized software services.

Why Should You Dump GBTG?

1. Sales trends were unexciting over the last two years as its 5.3% annual growth was well below the typical software company
2. Gross margin of 61% is below its competitors, leaving less money to invest in areas like marketing and R&D
3. Operating profits increased over the last year as the company gained some leverage on its fixed costs and became more efficient

American Express Global Business Travel is trading at $5.10 per share, or 0.8x forward price-to-sales. Read our free research report to see why you should think twice about including GBTG in your portfolio.

Two Stocks to Buy:

Alphabet (GOOGL)

Trailing 12-Month Free Cash Flow Margin: 18.2%

Started by Stanford students Larry Page and Sergey Brin in a Menlo Park garage, Alphabet (NASDAQ: GOOGL) is the parent company of the eponymous Google Search engine, Google Cloud Platform, and YouTube.

Why Do We Love GOOGL?

1. Alphabet’s dominant Google Search sits on the pantheon of the best businesses ever. This is reflected in its robust long-term revenue growth and elite operating margin.
2. The company’s profit margins have become even higher over time, speaking to its scale advantages and operating efficiency not only in its core Search business but also in Google Cloud Platform and YouTube.
3. Revenue growth and increasing operating margins are the key ingredients for strong EPS growth. Google has these, and when also factoring in its share repurchases, you can see why EPS has exploded over the long term.

At $305.49 per share, Alphabet trades at 27x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

HCA Healthcare (HCA)

Trailing 12-Month Free Cash Flow Margin: 10.2%

With roots dating back to 1968 and a network spanning 20 states, HCA Healthcare (NYSE: HCA) operates a network of 190 hospitals and 150+ outpatient facilities providing a full range of medical services across the US and England.

Why Are We Backing HCA?

1. Dominant market position is represented by its $75.6 billion in revenue, which creates significant barriers to entry in this highly regulated industry
2. Share buybacks catapulted its annual earnings per share growth to 21%, which outperformed its revenue gains over the last five years
3. Industry-leading 28.6% return on capital demonstrates management’s skill in finding high-return investments

HCA Healthcare’s stock price of $544.64 implies a valuation ratio of 17.7x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.