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3 Cash-Producing Stocks with Competitive Advantages

CALM Cover Image

Businesses with strong free cash flow tend to be more adaptable and resilient. Some of these companies shine bright by using their cash wisely to strengthen their market positions.

Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are three cash-producing companies that reinvest wisely to drive long-term success.

Cal-Maine (CALM)

Trailing 12-Month Free Cash Flow Margin: 27.6%

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ: CALM) produces, packages, and distributes eggs.

Why Is CALM a Good Business?

  1. Impressive 27.7% annual revenue growth over the last three years indicates it’s winning market share
  2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 66.4% over the last three years outstripped its revenue performance
  3. CALM is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety

Cal-Maine is trading at $93.50 per share, or 13.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

BellRing Brands (BRBR)

Trailing 12-Month Free Cash Flow Margin: 5.7%

Spun out of Post Holdings in 2019, Bellring Brands (NYSE: BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands.

Why Should You Buy BRBR?

  1. Products are flying off the shelves as its unit sales averaged 20.1% growth over the past two years
  2. Share repurchases have amplified shareholder returns as its annual earnings per share growth of 27.8% exceeded its revenue gains over the last three years
  3. Market-beating returns on capital illustrate that management has a knack for investing in profitable ventures

At $34.72 per share, BellRing Brands trades at 15.6x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

DXP (DXPE)

Trailing 12-Month Free Cash Flow Margin: 2%

Founded during the emergence of Big Oil in Texas, DXP (NASDAQ: DXPE) provides pumps, valves, and other industrial components.

Why Are We Positive On DXPE?

  1. Offerings and unique value proposition resonate with customers, as seen in its above-market 10.4% annual sales growth over the last five years
  2. Operating margin expanded by 5.2 percentage points over the last five years as it scaled and became more efficient
  3. Share buybacks catapulted its annual earnings per share growth to 32.6%, which outperformed its revenue gains over the last two years

DXP’s stock price of $124.33 implies a valuation ratio of 21.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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