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.
Just because a business has cash doesn’t mean it’s a good investment. Luckily, StockStory is here to help you separate the winners from the losers. That said, here is one company with a net cash position that balances growth with stability and two that may struggle.
Two Stocks to Sell:
Corcept (CORT)
Net Cash Position: $335.6 million (3.5% of Market Cap)
Focusing on the powerful stress hormone that affects everything from metabolism to immune function, Corcept Therapeutics (NASDAQ: CORT) develops and markets medications that modulate cortisol to treat endocrine disorders, cancer, and neurological diseases.
Why Is CORT Not Exciting?
- Expenses have increased as a percentage of revenue over the last five years as its adjusted operating margin fell by 16.9 percentage points
- Earnings per share fell by 2.8% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability
Corcept’s stock price of $91.64 implies a valuation ratio of 51.7x forward P/E. To fully understand why you should be careful with CORT, check out our full research report (it’s free for active Edge members).
Cohen & Steers (CNS)
Net Cash Position: $95.37 million (2.8% of Market Cap)
Founded in 1986 as a pioneer in real estate investment trusts (REITs), Cohen & Steers (NYSE: CNS) is an investment manager specializing in real estate securities, infrastructure, real assets, and preferred securities for institutional and individual investors.
Why Do We Think Twice About CNS?
- 2.2% annual revenue growth over the last four years was slower than its financials peers
- Earnings per share fell by 2.2% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
At $66.07 per share, Cohen & Steers trades at 20.5x forward P/E. Dive into our free research report to see why there are better opportunities than CNS.
One Stock to Buy:
DexCom (DXCM)
Net Cash Position: $1.67 billion (6.4% of Market Cap)
Founded in 1999 and receiving its first FDA approval in 2006, DexCom (NASDAQ: DXCM) develops and sells continuous glucose monitoring systems that allow people with diabetes to track their blood sugar levels without repeated finger pricks.
Why Is DXCM a Good Business?
- Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 17.8% over the past two years
- Earnings per share have massively outperformed its peers over the last five years, increasing by 17.5% annually
- Free cash flow margin grew by 8.6 percentage points over the last five years, giving the company more chips to play with
DexCom is trading at $66.36 per share, or 28.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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 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 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 Tecnoglass (+1,754% 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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