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 are two companies with net cash positions that balance growth with stability and one best left off your watchlist.
One Stock to Sell:
National Bank Holdings (NBHC)
Net Cash Position: $306.5 million (17.5% of Market Cap)
Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings (NYSE: NBHC) operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.
Why Do We Think NBHC Will Underperform?
- Annual sales declines of 1.3% for the past two years show its products and services struggled to connect with the market during this cycle
- Performance over the past five years shows its incremental sales were less profitable as its earnings per share were flat
- Estimated tangible book value per share growth of 2.1% for the next 12 months implies profitability will slow from its two-year trend
National Bank Holdings’s stock price of $40.12 implies a valuation ratio of 1x forward P/B. Dive into our free research report to see why there are better opportunities than NBHC.
Two Stocks to Buy:
Vita Coco (COCO)
Net Cash Position: $183.8 million (6.5% of Market Cap)
Founded in 2004 followed by a 2021 IPO, The Vita Coco Company (NASDAQ: COCO) offers coconut water products that are a natural way to quench thirst.
Why Is COCO a Top Pick?
- Stellar 9.9% growth in unit sales over the past two years demonstrates the high demand for its products
- Earnings per share grew by 70.9% annually over the last three years and trumped its peers
- Industry-leading 36.9% return on capital demonstrates management’s skill in finding high-return investments, and its returns are climbing as it finds even more attractive growth opportunities
Vita Coco is trading at $51.49 per share, or 30.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
FuelCell Energy (FCEL)
Net Cash Position: $178.8 million (53.9% of Market Cap)
Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.
Why Will FCEL Beat the Market?
- Projected revenue growth of 11.6% for the next 12 months suggests its momentum from the last two years will persist
- Earnings per share have massively outperformed its peers over the last two years, increasing by 31.9% annually
- Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
At $6.57 per share, FuelCell Energy trades at 1.7x forward price-to-sales. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
