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 best left off your watchlist.
Two Stocks to Sell:
UFP Industries (UFPI)
Net Cash Position: $684.4 million (12.6% of Market Cap)
Beginning as a lumber supplier in the 1950s, UFP Industries (NASDAQ: UFPI) is a holding company making building materials for the construction, retail, and industrial sectors.
Why Are We Out on UFPI?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 6.4% annually over the last two years
- Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable
- Waning returns on capital imply its previous profit engines are losing steam
UFP Industries’s stock price of $95.50 implies a valuation ratio of 17.8x forward P/E. Read our free research report to see why you should think twice about including UFPI in your portfolio.
CME Group (CME)
Net Cash Position: $938.8 million (0.9% of Market Cap)
Born from the Chicago Mercantile Exchange founded in 1898 as a butter and egg trading venue, CME Group (NASDAQ: CME) operates the world's largest derivatives marketplace where traders can buy and sell futures and options contracts across interest rates, equities, currencies, commodities, and more.
Why Are We Hesitant About CME?
- Annual revenue growth of 6% over the last five years was below our standards for the financials sector
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 9.6% annually
CME Group is trading at $297.07 per share, or 24.3x forward P/E. If you’re considering CME for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
IonQ (IONQ)
Net Cash Position: $2.36 billion (22.4% of Market Cap)
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
Why Do We Like IONQ?
- Market share has increased this cycle as its 143% annual revenue growth over the last two years was exceptional
- Expected revenue growth of 81.7% for the next year suggests its market share will rise
- Adjusted operating margin improvement of 1,226.6 percentage points over the last five years demonstrates its ability to scale efficiently
At $28.86 per share, IonQ trades at 43.9x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth 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.
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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 Exlservice (+354% five-year return). Find your next big winner with StockStory today.
