A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
Financial flexibility is valuable, but it’s not everything - at StockStory, we help you find the stocks that can not only survive but also outperform. Keeping that in mind, here is one company with a net cash position that can continue growing sustainably and two best left off your watchlist.
Two Stocks to Sell:
The Real Brokerage (REAX)
Net Cash Position: $76.28 million (15% of Market Cap)
Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ: REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.
Why Do We Think REAX Will Underperform?
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Earnings growth over the last four years fell short of the peer group average as its EPS only increased by 8.9% annually
- Free cash flow margin is expected to remain in place over the coming year
The Real Brokerage is trading at $2.46 per share, or 6.2x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than REAX.
Repligen (RGEN)
Net Cash Position: $619.9 million (9.4% of Market Cap)
With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.
Why Do We Steer Clear of RGEN?
- Smaller revenue base of $738.3 million means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 18.3 percentage points
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Repligen’s stock price of $115.46 implies a valuation ratio of 60.8x forward P/E. Check out our free in-depth research report to learn more about why RGEN doesn’t pass our bar.
One Stock to Buy:
Natera (NTRA)
Net Cash Position: $857.7 million (3.1% of Market Cap)
Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ: NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.
Why Will NTRA Beat the Market?
- Products are reaching more customers as its tests processed averaged 19.5% growth over the past two years
- Adjusted operating profits and efficiency rose over the last two years as it benefited from some fixed cost leverage
- Free cash flow profile has moved into positive territory over the last five years, indicating the company has passed a significant test
At $197.43 per share, Natera trades at 10.7x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
