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. That said, here is one company with a net cash position that can leverage its balance sheet to grow and two best left off your watchlist.
Two Stocks to Sell:
Yext (YEXT)
Net Cash Position: $39.24 million (3.8% of Market Cap)
Built to solve the problem of inconsistent business information scattered across the internet, Yext (NYSE: YEXT) provides a digital presence platform that helps businesses manage their information across websites, maps, apps, and search engines.
Why Should You Sell YEXT?
- ARR growth averaged a weak 9.1% over the last year, suggesting that competition is pulling some attention away from its software
- Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
- Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 3.4 percentage points
Yext is trading at $8.37 per share, or 2.4x forward price-to-sales. To fully understand why you should be careful with YEXT, check out our full research report (it’s free for active Edge members).
Enphase (ENPH)
Net Cash Position: $327.5 million (7.2% of Market Cap)
The first company to successfully commercialize the solar micro-inverter, Enphase (NASDAQ: ENPH) manufactures software-driven home energy products.
Why Are We Cautious About ENPH?
- Declining unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Efficiency has decreased over the last five years as its operating margin fell by 12 percentage points
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
At $34.95 per share, Enphase trades at 13.9x forward P/E. If you’re considering ENPH for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Dave (DAVE)
Net Cash Position: $27.64 million (1% of Market Cap)
Named after the biblical David fighting financial Goliaths, Dave (NASDAQ: DAVE) is a digital financial services platform that helps Americans living paycheck to paycheck with cash advances, banking services, and tools to improve their financial health.
Why Is DAVE Interesting?
- Market share has increased this cycle as its 35.3% annual revenue growth over the last two years was exceptional
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 82% over the last two years outstripped its revenue performance
Dave’s stock price of $204.88 implies a valuation ratio of 19.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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 Exlservice (+354% 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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