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:
Zoom (ZM)
Net Cash Position: $7.22 billion (26.2% of Market Cap)
Once the verb that defined remote work during the pandemic ("let's Zoom later"), Zoom (NASDAQ:ZM) provides a cloud-based platform for video meetings, phone calls, team chat, and collaboration tools that helps businesses and individuals connect virtually.
Why Is ZM Risky?
- Underwhelming ARR growth of 5% over the last year suggests the company faced challenges in acquiring and retaining long-term customers
- Platform has low switching costs as its net revenue retention rate of 98.5% demonstrates high turnover
- Demand will likely be soft over the next 12 months as Wall Street’s estimates imply tepid growth of 3.9%
At $93.37 per share, Zoom trades at 5.7x forward price-to-sales. If you’re considering ZM for your portfolio, see our FREE research report to learn more.
Corcept (CORT)
Net Cash Position: $298.8 million (2.4% of Market Cap)
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ:CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Why Does CORT Fall Short?
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 16.1% annually while its revenue grew
- Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 25.7 percentage points
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Corcept is trading at $116.42 per share, or 26.7x forward P/E. Dive into our free research report to see why there are better opportunities than CORT.
One Stock to Watch:
Novanta (NOVT)
Net Cash Position: $435 million (8.2% of Market Cap)
Originally a pioneer in the laser scanning industry during the late 1960s, Novanta (NASDAQ:NOVT) offers medicine and manufacturing technology to the medical, life sciences, and manufacturing industries.
Why Should NOVT Be on Your Watchlist?
- Market share has increased this cycle as its 10.7% annual revenue growth over the last five years was exceptional
- Market share is on track to rise over the next 12 months as its 20.5% projected revenue growth implies demand will accelerate from its two-year trend
- Offerings are difficult to replicate at scale and result in a stellar gross margin of 44.4%
Novanta’s stock price of $140.22 implies a valuation ratio of 36.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
Stocks We Like Even More
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 meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.