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. That said, here is one company with a net cash position that can continue growing sustainably and two that may struggle.
Two Stocks to Sell:
The Trade Desk (TTD)
Net Cash Position: $1.05 billion (15.4% 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 Does TTD Worry Us?
- Average billings growth of 12.2% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Projected sales decline of 14.6% for the next 12 months points to a tough demand environment ahead
- Projected 8.3 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
The Trade Desk’s stock price of $14.53 implies a valuation ratio of 2.5x forward price-to-sales. Read our free research report to see why you should think twice about including TTD in your portfolio.
Piper Sandler (PIPR)
Net Cash Position: $98.59 million (1.8% of Market Cap)
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Why Does PIPR Fall Short?
- 5% annual revenue growth over the last five years was slower than its financials peers
- Annual earnings per share growth of 3.3% underperformed its revenue over the last five years, showing its incremental sales were less profitable
- 6.4% annual tangible book value per share growth over the last five years was slower than its financials peers
At $78.38 per share, Piper Sandler trades at 15.1x forward P/E. To fully understand why you should be careful with PIPR, check out our full research report (it’s free).
One Stock to Buy:
Oscar Health (OSCR)
Net Cash Position: $3.64 billion (38.4% of Market Cap)
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Is OSCR a Top Pick?
- Annual revenue growth of 45.5% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings growth has massively outpaced its peers over the last five years as its EPS has compounded at 37.4% annually
- Free cash flow margin jumped by 23.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives, repurchase shares, or pay dividends
Oscar Health is trading at $30.58 per share, or 17.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
