A company that generates cash isn’t automatically a winner. Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.

Luckily for you, we built StockStory to help you separate the good from the bad. That said, here is one cash-producing company that excels at turning cash into shareholder value and two that may struggle to keep up.

Two Stocks to Sell:

Pool (POOL)

Trailing 12-Month Free Cash Flow Margin: 7.5%

Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ: POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products.

Why Do We Think POOL Will Underperform?

1. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
2. Free cash flow margin is anticipated to expand by 1.3 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends
3. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions

Pool’s stock price of $258.46 implies a valuation ratio of 22x forward P/E. Dive into our free research report to see why there are better opportunities than POOL.

Warner Bros. Discovery (WBD)

Trailing 12-Month Free Cash Flow Margin: 10.9%

Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ: WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.

Why Should You Sell WBD?

1. Annual revenue declines of 5.1% over the last two years indicate problems with its market positioning
2. Free cash flow margin is expected to remain in place over the coming year
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Warner Bros. Discovery is trading at $28.38 per share, or 11.6x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why WBD doesn’t pass our bar.

One Stock to Watch:

Boston Scientific (BSX)

Trailing 12-Month Free Cash Flow Margin: 19.8%

Founded in 1979 with a mission to advance less-invasive medicine, Boston Scientific (NYSE: BSX) develops and manufactures medical devices used in minimally invasive procedures across cardiovascular, urological, neurological, and gastrointestinal specialties.

Why Is BSX on Our Radar?

1. Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 16.2% over the past two years
2. Incremental sales over the last five years have been highly profitable as its earnings per share increased by 19.9% annually, topping its revenue gains
3. Free cash flow margin expanded by 5.5 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $96.74 per share, Boston Scientific trades at 29.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Check out the high-quality names we’ve flagged in 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 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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.