Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
Just because a business has cash doesn’t mean it’s a good investment. Luckily, StockStory is here to help you separate the winners from the losers. That said, here is one company with a net cash position that can leverage its balance sheet to grow and two best left off your watchlist.
Two Stocks to Sell:
BILL (BILL)
Net Cash Position: $393.3 million (7.2% of Market Cap)
Transforming the messy back-office financial operations that plague small business owners, BILL (NYSE: BILL) provides a cloud-based platform that automates accounts payable, accounts receivable, and expense management for small and midsize businesses.
Why Are We Hesitant About BILL?
- Products, pricing, or go-to-market strategy may need some adjustments as its 11.9% average billings growth over the last year was weak
- Estimated sales growth of 10.5% for the next 12 months implies demand will slow from its two-year trend
- Operating margin improvement of 3.1 percentage points over the last year demonstrates its ability to scale efficiently
BILL is trading at $54.28 per share, or 3.4x forward price-to-sales. To fully understand why you should be careful with BILL, check out our full research report (it’s free for active Edge members).
Cohen & Steers (CNS)
Net Cash Position: $98.05 million (3.1% of Market Cap)
Founded in 1986 as a pioneer in real estate investment trusts (REITs), Cohen & Steers (NYSE: CNS) is an investment manager specializing in real estate securities, infrastructure, real assets, and preferred securities for institutional and individual investors.
Why Does CNS Worry Us?
- 5.5% annual revenue growth over the last two years was slower than its financials peers
- Incremental sales over the last two years were less profitable as its 2% annual earnings per share growth lagged its revenue gains
At $62.55 per share, Cohen & Steers trades at 18.6x forward P/E. If you’re considering CNS for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Nextracker (NXT)
Net Cash Position: $845.3 million (6.6% of Market Cap)
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dhabi solar farm project, Nextracker (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Why Is NXT a Good Business?
- Demand is greater than supply as the company’s 56.9% average backlog growth over the past two years shows it’s securing new contracts and accumulating more orders than it can fulfill
- Free cash flow margin expanded by 15.6 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
- Returns on capital are growing as management capitalizes on its market opportunities
Nextracker’s stock price of $86.69 implies a valuation ratio of 22.3x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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-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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