A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
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 balance growth with stability and one with hidden risks.
One Stock to Sell:
Procore Technologies (PCOR)
Net Cash Position: $620.9 million (5.4% of Market Cap)
With a mission to build software for the people that build the world, Procore Technologies (NYSE: PCOR) provides cloud-based software that enables owners, contractors, and other stakeholders to collaborate and manage construction projects from any device.
Why Are We Hesitant About PCOR?
- Products, pricing, or go-to-market strategy may need some adjustments as its 13.6% average billings growth over the last year was weak
- Estimated sales growth of 12% for the next 12 months implies demand will slow from its two-year trend
- Efficiency fell over the last year as its operating margin declined by 1.9 percentage points because it pursued growth instead of profits
At $75.01 per share, Procore Technologies trades at 7.7x forward price-to-sales. If you’re considering PCOR for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
Universal Display (OLED)
Net Cash Position: $603 million (10% of Market Cap)
Serving major consumer electronics manufacturers, Universal Display (NASDAQ: OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.
Why Are We Positive On OLED?
- 10.5% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
- Offerings are mission-critical for businesses and lead to a best-in-class gross margin of 75.3%
- Excellent operating margin of 37.8% highlights the efficiency of its business model
Universal Display’s stock price of $126.50 implies a valuation ratio of 23.1x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
agilon health (AGL)
Net Cash Position: $240.9 million (71.2% of Market Cap)
Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE: AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.
Why Do We Like AGL?
- Annual revenue growth of 37.2% over the past five years was outstanding, reflecting market share gains this cycle
- Average customer growth of 19.9% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day
agilon health is trading at $0.82 per share, or 0x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.
