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Stock impact report

3 Cash-Producing Stocks We Approach with Caution [Yahoo! Finance]

United Parcel Service, Inc. (UPS) 
Last united parcel service, inc. earnings: 4/28 07:00 am Check Earnings Report
US:NYSE Investor Relations: investors.ups.com
Company Research Source: Yahoo! Finance
Cash flow is valuable, but it's not everything - StockStory helps you identify the companies that truly put it to work. That said, here are three cash-producing companies to steer clear of and a few better alternatives. Trailing 12-Month Free Cash Flow Margin: 4.4% Founded in NYC's Little Italy, MSC Industrial Direct (NYSE:MSM) provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors Why Do We Think MSM Will Underperform? Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy Earnings per share fell by 3.3% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Waning returns on capital imply its previous profit engines are losing steam At $84.76 per share, MSC Industrial trades at 19.6x forward P/E. Read our free research report to see why you should t Show less Read more
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