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 is one company with a net cash position that balances growth with stability and two best left off your watchlist.
Two Stocks to Sell:
Asana (ASAN)
Net Cash Position: $222.9 million (6.6% of Market Cap)
Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE: ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.
Why Do We Think ASAN Will Underperform?
- Offerings struggled to generate meaningful interest as its average billings growth of 9.6% over the last year did not impress
- Platform has low switching costs as its net revenue retention rate of 95.7% demonstrates high turnover
- Complex implementation process for enterprise clients means customers take longer to ramp up, as seen in its extended payback periods
Asana is trading at $14.21 per share, or 4.1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ASAN.
Dime Community Bancshares (DCOM)
Net Cash Position: $290.2 million (21.7% of Market Cap)
With roots dating back to 1910 and a name that evokes the historic "dime savings banks" of America's past, Dime Community Bancshares (NASDAQ: DCOM) is a New York-based bank holding company that provides commercial banking and financial services to businesses and consumers throughout Greater Long Island.
Why Are We Cautious About DCOM?
- Sales tumbled by 5.5% annually over the last two years, showing market trends are working against its favor during this cycle
- Net interest margin of 2.6% is well below other banks, signaling its loans aren’t very profitable
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 26.7% annually, worse than its revenue
Dime Community Bancshares’s stock price of $30.52 implies a valuation ratio of 1x forward P/B. Read our free research report to see why you should think twice about including DCOM in your portfolio.
One Stock to Watch:
Atlassian (TEAM)
Net Cash Position: $1.70 billion (3.9% of Market Cap)
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ: TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Could TEAM Be a Winner?
- Market share has increased as its 21.5% annual revenue growth over the last two years was exceptional
- Software is difficult to replicate at scale and results in a premier gross margin of 82.8%
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
At $165.82 per share, Atlassian trades at 7.1x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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 5 Growth Stocks for this month. 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
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