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.
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. Keeping that in mind, here is one company with a net cash position that balances growth with stability and two with hidden risks.
Two Stocks to Sell:
ePlus (PLUS)
Net Cash Position: $336.3 million (14.6% of Market Cap)
Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ: PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.
Why Does PLUS Give Us Pause?
- Estimated sales growth of 4.3% for the next 12 months implies demand will slow from its two-year trend
- Earnings growth underperformed the sector average over the last two years as its EPS grew by just 6.5% annually
- Waning returns on capital imply its previous profit engines are losing steam
ePlus’s stock price of $88.64 implies a valuation ratio of 16.9x forward P/E. If you’re considering PLUS for your portfolio, see our FREE research report to learn more.
RPC (RES)
Net Cash Position: $149.5 million (10.8% of Market Cap)
Operating primarily in the Permian Basin with 10 hydraulic fracturing fleets, RPC (NYSE: RES) provides specialized services and equipment like hydraulic fracturing, coiled tubing, and cementing to help oil and gas companies complete and maintain wells.
Why Do We Think Twice About RES?
- High extraction costs and unfavorable asset economics are reflected in its low gross margin of 28%
- Efficiency has decreased over the last five years as its EBITDA margin fell by 2.9 percentage points
- Poor free cash flow margin of 5.4% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
RPC is trading at $6.33 per share, or 21x forward P/E. Check out our free in-depth research report to learn more about why RES doesn’t pass our bar.
One Stock to Buy:
Alignment Healthcare (ALHC)
Net Cash Position: $363 million (13.3% of Market Cap)
Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ: ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.
Why Is ALHC a Top Pick?
- Annual revenue growth of 43.2% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last five years increased its profitability as the 47.9% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin grew by 6.8 percentage points over the last five years, giving the company more chips to play with
At $13.36 per share, Alignment Healthcare trades at 22.3x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
