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. That said, here are two companies with net cash positions that can continue growing sustainably and one that may struggle.

One Stock to Sell:

Tesla (TSLA)

Net Cash Position: $29.56 billion (2.2% of Market Cap)

Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ: TSLA) is an electric vehicle company accelerating the world’s transition to sustainable energy.

Why Do We Steer Clear of TSLA?

1. Tesla's scale advantage in EV production leads to gross margins that exceed incumbents such as General Motors and Ford. However, a softer macroeconomic backdrop and tariff pressures have weighed on automobile sales, which are highly cyclical.
2. The company's execution ability is a question mark given its long history of delays, such as the Cybertruck and Robotaxi launches. Its sizeable investments in projects with uncertain return timelines, like Optimus, also raise skepticism from investors.
3. On the bright side, Tesla's Megapack product solves a critical problem for utilities needing renewable energy storage solutions. This innovation has made the energy segment the most profitable and fastest-growing business line for the company.

Tesla is trading at $425.10 per share, or 200.8x forward price-to-earnings. Check out our free in-depth research report to learn more about why TSLA doesn’t pass our bar.

Two Stocks to Watch:

Monster (MNST)

Net Cash Position: $1.87 billion (2.8% of Market Cap)

Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.

Why Do We Love MNST?

1. Healthy operating margin of 27.5% shows it’s a well-run company with efficient processes
2. Robust free cash flow margin of 22.6% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy
3. Industry-leading 37.6% return on capital demonstrates management’s skill in finding high-return investments

Monster’s stock price of $69.51 implies a valuation ratio of 34.5x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

ResMed (RMD)

Net Cash Position: $357.6 million (0.9% 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?

1. Steady constant currency growth over the past two years shows the company can pursue its global ambitions, even in uncertain economic times
2. Incremental sales significantly boosted profitability as its annual earnings per share growth of 14.9% over the last five years outstripped its revenue performance
3. Free cash flow margin grew by 12.5 percentage points over the last five years, giving the company more chips to play with

At $272.20 per share, ResMed trades at 25.2x 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

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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