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 balance growth with stability and one with hidden risks.
One Stock to Sell:
CoStar (CSGP)
Net Cash Position: $193 million (1.5% of Market Cap)
With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ: CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.
Why Is CSGP Not Exciting?
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 1.6% annually while its revenue grew
- 17.4 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
At $31.97 per share, CoStar trades at 22.6x forward P/E. If you’re considering CSGP for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
The Trade Desk (TTD)
Net Cash Position: $982.3 million (10.2% of Market Cap)
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
Why Could TTD Be a Winner?
- Impressive 20.2% annual revenue growth over the last two years indicates it’s winning market share
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
- Excellent operating margin of 20.3% highlights the efficiency of its business model, and its profits increased over the last year as it scaled
The Trade Desk is trading at $20.51 per share, or 3.1x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Ameriprise Financial (AMP)
Net Cash Position: $4.86 billion (11.5% of Market Cap)
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE: AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
Why Is AMP a Good Business?
- Share repurchases over the last five years enabled its annual earnings per share growth of 23.9% to outpace its revenue gains
- Balance sheet strength has increased this cycle as its 18.7% annual tangible book value per share growth over the last two years was exceptional
- Industry-leading 63.7% return on equity demonstrates management’s skill in finding high-return investments
Ameriprise Financial’s stock price of $469.70 implies a valuation ratio of 10.6x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive 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 for 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
