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.
Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. That said, 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:
Stratasys (SSYS)
Net Cash Position: $211.1 million (27% of Market Cap)
Born from the Founder’s idea of making a toy frog with a glue gun, Stratasys (NASDAQ: SSYS) offers 3D printers and related materials, software, and services to many industries.
Why Do We Think Twice About SSYS?
- Sales tumbled by 6.2% annually over the last two years, showing market trends are working against it during this cycle
- Poor expense management has led to operating margin losses
- Cash-burning history makes us doubt the long-term viability of its business model
Stratasys’s stock price of $9.09 implies a valuation ratio of 67.9x forward P/E. Check out our free in-depth research report to learn more about why SSYS doesn’t pass our bar.
Hope Bancorp (HOPE)
Net Cash Position: $390.9 million (23.5% of Market Cap)
With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ: HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.
Why Do We Avoid HOPE?
- Annual net interest income growth of 1% over the last five years was below our standards for the banking sector
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 2.2% annually while its revenue grew
- Tangible book value per share was flat over the last two years, indicating it’s failed to build equity value this cycle
At $13.19 per share, Hope Bancorp trades at 0.7x forward P/B. Dive into our free research report to see why there are better opportunities than HOPE.
One Stock to Buy:
SoFi (SOFI)
Net Cash Position: $1.48 billion (6.9% of Market Cap)
Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.
Why Do We Love SOFI?
- Annual revenue growth of 33.4% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 396% over the last two years outstripped its revenue performance
SoFi is trading at $16.59 per share, or 26x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
