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. Keeping that in mind, here is one company with a net cash position that can continue growing sustainably and two best left off your watchlist.
Two Stocks to Sell:
Advanced Energy (AEIS)
Net Cash Position: $223.7 million (1.9% of Market Cap)
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ: AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Why Are We Cautious About AEIS?
- Muted 4.2% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 4.1% annually
- Diminishing returns on capital suggest its earlier profit pools are drying up
Advanced Energy is trading at $317.64 per share, or 39.5x forward P/E. Read our free research report to see why you should think twice about including AEIS in your portfolio.
WSFS Financial (WSFS)
Net Cash Position: $1.24 billion (36% of Market Cap)
Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ: WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.
Why Does WSFS Worry Us?
- Muted 3.2% annual revenue growth over the last two years shows its demand lagged behind its banking peers
- Estimated net interest income decline of 6.9% for the next 12 months implies a challenging demand environment
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 26.9 basis points (100 basis points = 1 percentage point)
At $65.20 per share, WSFS Financial trades at 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than WSFS.
One Stock to Buy:
CrowdStrike (CRWD)
Net Cash Position: $4.41 billion (4.4% of Market Cap)
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Do We Love CRWD?
- Billings growth has averaged 26% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Forecasted revenue growth of 22.8% for the next 12 months indicates its momentum over the last two years is sustainable
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
CrowdStrike’s stock price of $393.80 implies a valuation ratio of 16.9x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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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.
