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. Keeping that in mind, here is one company with a net cash position that balances growth with stability and two with hidden risks.
Two Stocks to Sell:
Crane (CR)
Net Cash Position: $285 million (2.7% of Market Cap)
Based in Connecticut, Crane (NYSE: CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.
Why Do We Think CR Will Underperform?
- Sales tumbled by 6.1% annually over the last five years, showing market trends are working against its favor during this cycle
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Issuance of new shares over the last two years caused its earnings per share to fall by 6.7% annually while its revenue grew
Crane is trading at $183.74 per share, or 30.7x forward P/E. Read our free research report to see why you should think twice about including CR in your portfolio.
Progyny (PGNY)
Net Cash Position: $279.6 million (16.8% of Market Cap)
Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ: PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.
Why Does PGNY Fall Short?
- Smaller revenue base of $1.24 billion means it hasn’t achieved the economies of scale that some industry juggernauts enjoy
- Estimated sales growth of 4.8% for the next 12 months implies demand will slow from its two-year trend
- Below-average returns on capital indicate management struggled to find compelling investment opportunities
Progyny’s stock price of $19.02 implies a valuation ratio of 11.1x forward P/E. To fully understand why you should be careful with PGNY, check out our full research report (it’s free for active Edge members).
One Stock to Buy:
DoorDash (DASH)
Net Cash Position: $1.75 billion (1.6% of Market Cap)
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NYSE: DASH) operates an on-demand food delivery platform.
Why Do We Love DASH?
- Orders have increased by an average of 20.3% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 109% over the last three years outstripped its revenue performance
- Free cash flow margin expanded by 11.9 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
At $261.95 per share, DoorDash trades at 34.6x forward EV/EBITDA. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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