1 Cash-Producing Stock to Consider Right Now and 2 We Question

Barchart·04/03/2026 05:34:16

While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns. Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.

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 face some trouble.

Two Healthcare Stocks to Sell:

AMN Healthcare Services (AMN)

Trailing 12-Month Free Cash Flow Margin: 8.6%

With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE:AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.

Why Should You Dump AMN?

1. Sales tumbled by 15.1% annually over the last two years, showing market trends are working against its favor during this cycle
2. Earnings per share have contracted by 16.9% annually over the last five years, a headwind for returns as stock prices often echo long-term EPS performance
3. Waning returns on capital imply its previous profit engines are losing steam

AMN Healthcare Services is trading at $18.21 per share, or 9.1x forward P/E. Read our free research report to see why you should think twice about including AMN in your portfolio.

DaVita (DVA)

Trailing 12-Month Free Cash Flow Margin: 9.6%

With over 2,600 dialysis centers across the United States and a presence in 13 countries, DaVita (NYSE:DVA) operates a network of dialysis centers providing treatment and care for patients with chronic kidney disease and end-stage kidney disease.

Why Are We Wary of DVA?

1. Flat treatments over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. Estimated sales growth of 2.5% for the next 12 months implies demand will slow from its two-year trend
3. Free cash flow margin shrank by 1.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive

DaVita’s stock price of $146.14 implies a valuation ratio of 10.6x forward P/E. To fully understand why you should be careful with DVA, check out our full research report (it’s free).

One Healthcare Stock to Watch:

BrightSpring Health Services (BTSG)

Trailing 12-Month Free Cash Flow Margin: 3.1%

Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.

Why Do We Watch BTSG?

1. Impressive 20.9% annual revenue growth over the last two years indicates it’s winning market share this cycle
2. $12.91 billion in revenue gives its scale, which leads to bargaining power with customers because there are few trusted alternatives
3. Estimated revenue growth of 15% for the next 12 months implies its momentum over the last two years will continue

At $43.11 per share, BrightSpring Health Services trades at 27.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

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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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

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