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 with hidden risks.
Two Stocks to Sell:
Workday (WDAY)
Net Cash Position: $3.05 billion (5.3% of Market Cap)
Born from the vision of PeopleSoft founders after Oracle's hostile takeover of their previous company, Workday (NASDAQ: WDAY) provides cloud-based software for financial management, human resources, planning, and analytics to help organizations manage their business operations.
Why Are We Cautious About WDAY?
- Underwhelming ARR growth of 13.8% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
- Estimated sales growth of 12.8% for the next 12 months implies demand will slow from its two-year trend
- Operating margin improvement of 1.6 percentage points over the last year demonstrates its ability to scale efficiently
Workday is trading at $218.98 per share, or 5.6x forward price-to-sales. Dive into our free research report to see why there are better opportunities than WDAY.
Boston Beer (SAM)
Net Cash Position: $209.6 million (10.2% of Market Cap)
Known for its flavorful beverages challenging the status quo, Boston Beer (NYSE: SAM) is a pioneer in craft brewing and a symbol of American innovation in the alcoholic beverage industry.
Why Does SAM Worry Us?
- Flat sales over the last three years suggest it must innovate and find new ways to grow
- Revenue base of $1.98 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Projected sales for the next 12 months are flat and suggest demand will be subdued
At $197 per share, Boston Beer trades at 18.7x forward P/E. To fully understand why you should be careful with SAM, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
ResMed (RMD)
Net Cash Position: $537.5 million (1.5% of Market Cap)
Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE: RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.
Why Are We Fans of RMD?
- Constant currency growth averaged 9.4% over the past two years, showing it can expand globally regardless of the macroeconomic environment
- Additional sales over the last five years increased its profitability as the 14.2% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 21.4 percentage points over the last five years, giving the company more capital to invest or return to shareholders
ResMed’s stock price of $244.89 implies a valuation ratio of 21.8x forward P/E. Is now the time to initiate a position? Find out in our full 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 Growth Stocks for this month. 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.
