3 Stocks Generating Strong Free Cash Flow for Long-Term Investors

Three cash-producing stocks for long-term investors are Coinbase (COIN) with a 28.2% trailing 12-month free cash flow margin, Ross Stores (ROST) with a 7.6% margin, and H&R Block (HRB) with a 17.5% margin. These companies use their cash wisely to strengthen their market positions. Coinbase's customer spending is rising, Ross Stores is expanding its store count, and H&R Block has demonstrated revenue growth and strong returns on capital.

In the realm of investing, generating cash is a fundamental requirement for business sustainability. However, not all cash-rich companies are ideal investments. Some struggle with effective cash allocation, leading to missed opportunities for growth. This article highlights three cash-producing stocks that are leveraging their financial strength to solidify their market positions: Coinbase (COIN), Ross Stores (ROST), and H&R Block (HRB).

Coinbase (COIN)
Coinbase, a leading cryptocurrency exchange, has a robust trailing 12-month free cash flow margin of 28.2% [1]. The company has been experiencing a surge in customer spending, which is a positive indicator of growing demand and adoption of cryptocurrencies. Coinbase's ability to generate significant cash flows allows it to invest in expanding its services, improving its platform, and exploring new markets. This strategic use of cash can drive long-term growth and increase shareholder value.

Ross Stores (ROST)
Ross Stores, a discount retailer, has a trailing 12-month free cash flow margin of 7.6% [2]. The company has been focusing on expanding its store count, which is a key strategy to increase its market presence and revenue. Ross Stores has been successful in attracting customers through its competitive pricing and wide selection of products. By generating cash, Ross Stores can continue to invest in its retail expansion, which can lead to increased sales and profitability.

H&R Block (HRB)
H&R Block, a tax preparation services company, has a trailing 12-month free cash flow margin of 17.5% [3]. The company has demonstrated strong revenue growth and positive returns on capital, which indicates effective cash management. H&R Block has been investing in technology to improve its services and enhance the customer experience. This strategic use of cash can help the company maintain its competitive edge and continue to grow its business.

Conclusion
These three cash-producing stocks—Coinbase, Ross Stores, and H&R Block—are leveraging their financial strength to strengthen their market positions. By generating cash and investing wisely, these companies can drive long-term growth and create value for shareholders. Investors should carefully consider these opportunities and conduct thorough research before making investment decisions.

References:
[1] https://finance.yahoo.com/news/1-cash-producing-stock-exciting-043308409.html
[2] https://finance.yahoo.com/news/2-cash-producing-stocks-long-043920456.html
[3] https://www.ainvest.com/news/real-brokerage-potential-palantir-10x-returns-2507/