Core Insights - Strong cash flow is an important indicator of stability but does not always lead to superior returns, as some cash-heavy businesses may face challenges such as inefficient spending and weak competitive positioning [1] Group 1: Stocks to Sell - **Trimble (TRMB)**: - Trailing 12-Month Free Cash Flow Margin is 8.8% [2] - Current trading price is $79.13 per share, with a forward P/E ratio of 23.8x [4] - **Ibotta (IBTA)**: - Trailing 12-Month Free Cash Flow Margin is 24.4% [5] - Current stock price is $28.52, implying a forward P/E ratio of 35.8x [6] Group 2: Stock to Buy - **Hubbell (HUBB)**: - Trailing 12-Month Free Cash Flow Margin is 15% [7] - Operating profits and efficiency have improved over the last five years due to fixed cost leverage [11] - Share repurchases have enhanced shareholder returns, with annual earnings per share growth of 18.1% outpacing revenue gains [11] - Free cash flow margin increased by 5.9 percentage points over the last five years, providing more capital for investment [11]