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 are two companies with net cash positions that can continue growing sustainably and one best left off your watchlist.
One Stock to Sell:
ON24 (ONTF)
Net Cash Position: $162 million (46.6% of Market Cap)
Powering over 1,700 companies' virtual marketing efforts since 1998, ON24 (NYSE: ONTF) provides a cloud-based platform that enables businesses to create interactive digital experiences and capture actionable data from customer engagement.
Why Do We Pass on ONTF?
- Billings have dropped by 5.8% over the last year, suggesting it might have to lower prices to stimulate growth
- Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
- Poor expense management has led to operating margin losses
ON24’s stock price of $8.10 implies a valuation ratio of 2.5x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ONTF.
Two Stocks to Watch:
Doximity (DOCS)
Net Cash Position: $724.4 million (16.6% of Market Cap)
With over 80% of U.S. physicians as members of its digital community, Doximity (NYSE: DOCS) operates a digital platform that enables physicians and other healthcare professionals to collaborate, stay current with medical news, manage their careers, and conduct virtual patient visits.
Why Does DOCS Stand Out?
- Annual revenue growth of 29.3% over the past five years was outstanding, reflecting market share gains
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- DOCS is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $23.54 per share, Doximity trades at 7.2x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Blue Bird (BLBD)
Net Cash Position: $152.6 million (8.8% of Market Cap)
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
Why Will BLBD Beat the Market?
- Market share has increased this cycle as its 11.9% annual revenue growth over the last five years was exceptional
- Free cash flow margin grew by 23.5 percentage points over the last five years, giving the company more chips to play with
- Returns on capital are growing as management capitalizes on its market opportunities
Blue Bird is trading at $55.09 per share, or 12.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
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.
