A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.
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. 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:
Equitable Holdings (EQH)
Net Cash Position: $5.77 billion (50.6% of Market Cap)
Tracing its roots back to 1859 as one of America's oldest financial institutions, Equitable Holdings (NYSE: EQH) provides retirement planning, asset management, and life insurance products through its two main franchises, Equitable and AllianceBernstein.
Why Are We Hesitant About EQH?
- Annual sales growth of 2.5% over the last five years lagged behind its insurance peers as its large revenue base made it difficult to generate incremental demand
- Efficiency has decreased over the last two years as its pre-tax profit margin fell by 13.3 percentage points
Equitable Holdings’s stock price of $40.54 implies a valuation ratio of 5.6x forward P/E. If you’re considering EQH for your portfolio, see our FREE research report to learn more.
TriCo Bancshares (TCBK)
Net Cash Position: $232.5 million (14.7% of Market Cap)
Founded in 1975 and headquartered in Chico, California, TriCo Bancshares (NASDAQ: TCBK) operates Tri Counties Bank, providing personal, small business, and commercial banking services through branches across California.
Why Are We Cautious About TCBK?
- Annual net interest income growth of 6.6% over the last five years was below our standards for the banking sector
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 7.4% annually
- Estimated tangible book value per share growth of 8.9% for the next 12 months implies profitability will slow from its two-year trend
At $49.70 per share, TriCo Bancshares trades at 1.2x forward P/B. Check out our free in-depth research report to learn more about why TCBK doesn’t pass our bar.
One Stock to Watch:
Intuitive Surgical (ISRG)
Net Cash Position: $4.52 billion (3.1% of Market Cap)
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Do We Watch ISRG?
- Annual revenue growth of 20.2% over the last two years was superb and indicates its market share increased during this cycle
- Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute
Intuitive Surgical is trading at $413.19 per share, or 39.9x forward P/E. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
