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.
Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here is one company with a net cash position that can continue growing sustainably and two that may struggle.
Two Stocks to Sell:
Ruger (RGR)
Net Cash Position: $99.3 million (13.4% of Market Cap)
Founded in 1949, Ruger (NYSE: RGR) is an American manufacturer of firearms for the commercial sporting market.
Why Should You Sell RGR?
- Annual revenue declines of 3.9% over the last two years indicate problems with its market positioning
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 14.6% annually
- Waning returns on capital imply its previous profit engines are losing steam
At $45.47 per share, Ruger trades at 24.1x forward P/E. If you’re considering RGR for your portfolio, see our FREE research report to learn more.
Capital One (COF)
Net Cash Position: $21.14 billion (16.3% of Market Cap)
Starting as a credit card company in 1988 before expanding into a full-service bank, Capital One (NYSE: COF) is a financial services company that offers credit cards, auto loans, banking services, and commercial lending to consumers and businesses.
Why Does COF Give Us Pause?
- Annual tangible book value per share growth of 1.3% over the last two years lagged behind its financials peers as its large balance sheet made it difficult to generate incremental capital growth
Capital One’s stock price of $202.84 implies a valuation ratio of 11.4x forward P/E. Read our free research report to see why you should think twice about including COF in your portfolio.
One Stock to Watch:
Lantheus (LNTH)
Net Cash Position: $127.9 million (3.3% of Market Cap)
Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.
Why Are We Fans of LNTH?
- Market share has increased this cycle as its 35.6% annual revenue growth over the last five years was exceptional
- Free cash flow margin increased by 22.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders
- Returns on capital are climbing as management makes more lucrative bets
Lantheus is trading at $55.75 per share, or 11.3x forward P/E. Is now a good time to buy? Find out in our full 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-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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