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. That said, here are two companies with net cash positions that balance growth with stability and one best left off your watchlist.

One Stock to Sell:

Chegg (CHGG)

Net Cash Position: $5.42 million (4.4% of Market Cap)

Started as a physical textbook rental service, Chegg (NYSE: CHGG) is now a digital platform addressing student pain points by providing study and academic assistance.

Why Are We Out on CHGG?

1. Services Subscribers have declined by 17.3% annually over the last two years, suggesting it may need to revamp its features or user experience to stay competitive
2. EBITDA profits fell over the last few years as its sales dropped and it struggled to adjust its fixed costs
3. Performance over the past three years shows each sale was less profitable as its earnings per share dropped by 38.2% annually, worse than its revenue

Chegg is trading at $1.16 per share, or 1.5x forward EV/EBITDA. Read our free research report to see why you should think twice about including CHGG in your portfolio.

Two Stocks to Watch:

Samsara (IOT)

Net Cash Position: $616 million (3.2% of Market Cap)

One of the few public companies where famed investor Marc Andreessen is a Board member, Samsara (NYSE: IOT) provides software and hardware to track industrial equipment, assets, and fleets.

Why Should You Buy IOT?

1. ARR growth averaged 33.3% over the last year, showing customers are willing to take multi-year bets on its offerings
2. Notable projected revenue growth of 22.1% for the next 12 months hints at market share gains
3. Operating margin improvement of 19.2 percentage points over the last year demonstrates its ability to scale efficiently

Samsara’s stock price of $33.95 implies a valuation ratio of 11.8x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

UMB Financial (UMBF)

Net Cash Position: $8.26 billion (98.7% of Market Cap)

With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ: UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.

Why Does UMBF Stand Out?

1. Annual net interest income growth of 19.7% over the last five years was superb and indicates its market share increased during this cycle
2. Exciting net interest income outlook for the upcoming 12 months calls for 37.8% growth, an acceleration from its five-year trend
3. Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 15.3% annually

At $110.18 per share, UMB Financial trades at 1.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 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-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

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