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. That said, here are two companies with net cash positions that balance growth with stability and one with hidden risks.

One Stock to Sell:

Lindsay (LNN)

Net Cash Position: $71.59 million (4.8% of Market Cap)

A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE: LNN) provides a variety of proprietary water management and road infrastructure products and services.

Why Does LNN Give Us Pause?

1. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
2. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue
3. Earnings per share have contracted by 1.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance

At $136.29 per share, Lindsay trades at 22.1x forward P/E. Check out our free in-depth research report to learn more about why LNN doesn’t pass our bar.

Two Stocks to Watch:

SentinelOne (S)

Net Cash Position: $749.2 million (12.7% of Market Cap)

With roots in the Israeli cyber intelligence community, SentinelOne (NYSE: S) provides software to help organizations efficiently detect, prevent, and investigate cyber attacks.

Why Are We Positive On S?

1. ARR growth averaged 28.1% over the last year, showing customers are willing to take multi-year bets on its offerings
2. Estimated revenue growth of 21.4% for the next 12 months implies its momentum over the last three years will continue
3. Free cash flow margin is anticipated to expand by 7 percentage points over the next year, providing additional flexibility for investments and share buybacks/dividends

SentinelOne’s stock price of $17.87 implies a valuation ratio of 5.6x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Barrett (BBSI)

Net Cash Position: $75.98 million (7.1% of Market Cap)

Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ: BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.

Why Could BBSI Be a Winner?

1. Operating margin improvement of 1.1 percentage points over the last five years demonstrates its ability to scale efficiently
2. Industry-leading 57.3% return on capital demonstrates management’s skill in finding high-return investments, and its returns are growing as it capitalizes on even better market opportunities
3. Rising returns on capital show management is finding more attractive investment opportunities

Barrett is trading at $41.96 per share, or 18.5x forward P/E. Is now a good 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 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.