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. Keeping that in mind, here are two companies with net cash positions that balance growth with stability and one that may struggle.

One BankStock to Sell:

First Bancorp (FBNC)

Net Cash Position: $666.1 million (38.8% of Market Cap)

Founded during the Great Depression in 1934 and originally known as Montgomery Bancorp, First Bancorp (NASDAQ: FBNC) is a community-oriented commercial bank providing a wide range of financial services to businesses and individuals in North and South Carolina.

Why Are We Wary of FBNC?

1. Annual sales declines of 5% for the past two years show its products and services struggled to connect with the market during this cycle
2. 28.3 basis point (100 basis points = 1 percentage point) decline in its net interest margin over the last two years reflects the company’s willingness to accept lower yields to defend its market position
3. Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 14.3% annually, worse than its revenue

At $41.45 per share, First Bancorp trades at 1.1x forward P/B. To fully understand why you should be careful with FBNC, check out our full research report (it’s free).

Two Bank Stocks to Watch:

Pathward Financial (CASH)

Net Cash Position: $1.63 billion (91.1% of Market Cap)

Formerly known as Meta Financial until its 2022 rebranding, Pathward Financial (NASDAQ: CASH) provides banking-as-a-service solutions and commercial finance products, enabling partners to offer financial services like prepaid cards, payment processing, and lending options.

Why Should You Buy CASH?

1. Market share has increased this cycle as its 15.1% annual net interest income growth over the last four years was exceptional
2. Differentiated product suite leads to a Strong performance of its loan book leads to a High-yielding loan book and low cost of funds are reflected in its best-in-class net interest margin of 6.4%
3. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

Pathward Financial is trading at $76.23 per share, or 2.1x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

FB Financial (FBK)

Net Cash Position: $582.7 million (29.1% of Market Cap)

Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.

Why Are We Fans of FBK?

1. Solid 9.8% annual net interest income growth over the last four years indicates its offerings are gaining share
2. Exciting net interest income outlook for the upcoming 12 months calls for 23.9% growth, an acceleration from its four-year trend
3. Earnings per share grew by 7.7% annually over the last two years, massively outpacing its peers

FB Financial’s stock price of $43.56 implies a valuation ratio of 1.2x forward P/B. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our 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 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.