A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.
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 can leverage their balance sheets to grow and one best left off your watchlist.
One Stock to Sell:
Atlantic Union Bankshares (AUB)
Net Cash Position: $695.9 million (13.6% of Market Cap)
Tracing its roots back to 1902 when it first opened its doors in Virginia, Atlantic Union Bankshares (NYSE: AUB) is a full-service regional bank providing commercial and retail banking, wealth management, and insurance services throughout Virginia and parts of Maryland and North Carolina.
Why Does AUB Fall Short?
- Net interest margin of 3.4% is well below other banks, signaling its loans aren’t very profitable
- Flat tangible book value per share over the last five years suggest it must find different ways to enhance shareholder value during this cycle
- Low tier one capital ratio of 9.8% indicates the company may struggle to maintain adequate liquidity during periods of economic stress
At $36 per share, Atlantic Union Bankshares trades at 1.1x forward P/B. Read our free research report to see why you should think twice about including AUB in your portfolio.
Two Stocks to Buy:
Powell (POWL)
Net Cash Position: $432.4 million (11.3% of Market Cap)
Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE: POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.
Why Are We Backing POWL?
- Annual revenue growth of 28.7% over the last two years was superb and indicates its market share increased during this cycle
- Additional sales over the last two years increased its profitability as the 124% annual growth in its earnings per share outpaced its revenue
- Free cash flow margin increased by 12.8 percentage points over the last five years, giving the company more capital to invest or return to shareholders
Powell’s stock price of $318.11 implies a valuation ratio of 21.8x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Blue Bird (BLBD)
Net Cash Position: $81.57 million (4.6% of Market Cap)
With around a century of experience, Blue Bird (NASDAQ: BLBD) is a manufacturer of school buses and complementary parts.
Why Will BLBD Outperform?
- Annual revenue growth of 14.3% over the past two years was outstanding, reflecting market share gains this cycle
- Additional sales over the last two years increased its profitability as the 317% annual growth in its earnings per share outpaced its revenue
- Returns on capital are growing as management capitalizes on its market opportunities
Blue Bird is trading at $57 per share, or 13.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 6 Stocks for this week. 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-micro-cap company Kadant (+351% 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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