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.

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:

Vishay Precision (VPG)

Net Cash Position: $29.17 million (7.8% of Market Cap)

Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.

Why Do We Avoid VPG?

1. Annual sales declines of 9.6% for the past two years show its products and services struggled to connect with the market during this cycle
2. Expenses have increased as a percentage of revenue over the last five years as its operating margin fell by 6.3 percentage points
3. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 22.5% annually

Vishay Precision’s stock price of $28.10 implies a valuation ratio of 23.3x forward P/E. Check out our free in-depth research report to learn more about why VPG doesn’t pass our bar.

Align Technology (ALGN)

Net Cash Position: $786.5 million (5.7% of Market Cap)

Pioneering an alternative to traditional metal braces with nearly invisible plastic aligners, Align Technology (NASDAQ: ALGN) designs and manufactures Invisalign clear aligners, iTero intraoral scanners, and dental CAD/CAM software for orthodontic and restorative treatments.

Why Do We Think Twice About ALGN?

1. Weak clear aligner shipments over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
2. 7.6 percentage point decline in its free cash flow margin over the last five years reflects the company’s increased investments to defend its market position
3. Diminishing returns on capital suggest its earlier profit pools are drying up

Align Technology is trading at $189.41 per share, or 18.5x forward P/E. To fully understand why you should be careful with ALGN, check out our full research report (it’s free).

One Stock to Buy:

Comfort Systems (FIX)

Net Cash Position: $136.9 million (0.7% of Market Cap)

Formed through the merger of 12 companies, Comfort Systems (NYSE: FIX) provides mechanical and electrical contracting services.

Why Is FIX a Top Pick?

1. Average backlog growth of 30.5% over the past two years shows it has a steady sales pipeline that will drive future orders
2. Earnings per share have massively outperformed its peers over the last two years, increasing by 67.6% annually
3. Rising returns on capital show management is finding more attractive investment opportunities

At $544.48 per share, Comfort Systems trades at 28.7x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like 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 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