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.

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 are two companies with net cash positions that can continue growing sustainably and one best left off your watchlist.

One Stock to Sell:

ON24 (ONTF)

Net Cash Position: $178.3 million (76% of Market Cap)

Started in 1998 as a platform to broadcast press conferences, ON24’s (NYSE: ONTF) software helps organizations organize online webinars and other virtual events and convert prospects into customers.

Why Should You Dump ONTF?

1. Products, pricing, or go-to-market strategy need some adjustments as its billings have averaged 3.3% declines over the last year
2. Projected sales decline of 6% over the next 12 months indicates demand will continue deteriorating
3. Competitive market means the company must spend more on sales and marketing to stand out even if the return on investment is low

At $5.67 per share, ON24 trades at 1.7x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ONTF.

Two Stocks to Watch:

Microsoft (MSFT)

Net Cash Position: $19.05 billion (0.5% of Market Cap)

Short for microcomputer software, Microsoft (NASDAQ: MSFT) is the largest software vendor in the world with its Windows operating system, Office suite, and cloud computing services.

Why Will MSFT Outperform?

1. Microsoft is one of the great brands not just in tech but all of business. It produces mission-critical software and bundles it together, resulting in cream-of-the-crop gross margins.
2. The company's elite unit economics lead to robust profit margins that improve over time. This speaks to the scale advantages and operating efficiency across its diverse portfolio, which spans everything from Office and Azure to Minecraft.
3. Microsoft has a virtuous cycle of returns. Its dominant market position enables it to generate strong free cash flow, and it reinvests these funds into promising ventures that further strengthen its competitive moat.

Microsoft is trading at $476.65 per share, or 33.8x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

WSFS Financial (WSFS)

Net Cash Position: $4.39 billion (146% of Market Cap)

Founded in 1832 as Wilmington Savings Fund Society and one of the oldest banks in America still operating under its original name, WSFS Financial (NASDAQ: WSFS) operates a community banking and wealth management franchise primarily serving customers in the Mid-Atlantic region through its main subsidiary, WSFS Bank.

Why Does WSFS Stand Out?

1. Solid 11% annual net interest income growth over the last four years indicates its offerings are gaining share
2. Balance sheet strength has increased this cycle as its 17.5% annual tangible book value per share growth over the last two years was exceptional
3. Tangible book value outlook for the upcoming 12 months implies the bank will stay on its desirable two-year capital growth trajectory

WSFS Financial’s stock price of $53.08 implies a valuation ratio of 1.1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

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 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 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.