1 Cash-Producing Stock to Target This Week and 2 We Find Risky

Barchart·07/16/2026 04:50:11

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

Cash flow is valuable, but it’s not everything - StockStory helps you identify the companies that truly put it to work. Keeping that in mind, here is one cash-producing company that reinvests wisely to drive long-term success and two that may face some trouble.

Two Stocks to Sell:

AT&T (T)

Trailing 12-Month Free Cash Flow Margin: 13.7%

Founded by Alexander Graham Bell, AT&T (NYSE:T) is a multinational telecomm conglomerate providing a range of communications and internet services.

Why Are We Out on T?

1. Annual revenue declines of 1.3% over the last five years indicate problems with its market positioning
2. Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable
3. Free cash flow margin is not anticipated to grow over the next year

AT&T is trading at $21.42 per share, or 9x forward P/E. If you’re considering T for your portfolio, see our FREE research report to learn more.

AMN Healthcare Services (AMN)

Trailing 12-Month Free Cash Flow Margin: 20.7%

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. Declining travelers on assignment over the past two years indicate demand is soft and that the company may need to revise its strategy
2. Earnings per share have dipped by 7.1% annually over the past five years, which is concerning because stock prices follow EPS over the long term
3. Waning returns on capital imply its previous profit engines are losing steam

AMN Healthcare Services’s stock price of $32.50 implies a valuation ratio of 38.6x forward P/E. Dive into our free research report to see why there are better opportunities than AMN.

One Stock to Buy:

Dycom (DY)

Trailing 12-Month Free Cash Flow Margin: 7.3%

Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure.

Why Will DY Outperform?

1. Annual revenue growth of 21% over the past two years was outstanding, reflecting market share gains this cycle
2. Additional sales over the last two years increased its profitability as the 31.5% annual growth in its earnings per share outpaced its revenue
3. Free cash flow margin expanded by 5.7 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends

At $427.62 per share, Dycom trades at 25.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

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