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 is one company with a net cash position that can leverage its balance sheet to grow and two that may struggle.

Two Stocks to Sell:

Applied Materials (AMAT)

Net Cash Position: $752 million (0.4% of Market Cap)

Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ: AMAT) is the largest provider of semiconductor wafer fabrication equipment.

Why Are We Wary of AMAT?

1. Sales are projected to tank by 1.4% over the next 12 months as demand evaporates
2. Free cash flow margin dropped by 2.7 percentage points over the last five years, implying the company became more capital intensive as competition picked up

Applied Materials’s stock price of $217.50 implies a valuation ratio of 22.2x forward P/E. To fully understand why you should be careful with AMAT, check out our full research report (it’s free).

Insteel (IIIN)

Net Cash Position: $51.82 million (6.9% of Market Cap)

Growing from a small wire manufacturer to one of the largest in the U.S., Insteel (NYSE: IIIN) provides steel wire reinforcing products for concrete.

Why Does IIIN Worry Us?

1. Sales tumbled by 7% annually over the last two years, showing market trends are working against its favor during this cycle
2. Sales were less profitable over the last two years as its earnings per share fell by 19.5% annually, worse than its revenue declines
3. Eroding returns on capital suggest its historical profit centers are aging

Insteel is trading at $38.10 per share, or 14.9x forward P/E. Dive into our free research report to see why there are better opportunities than IIIN.

One Stock to Watch:

Globus Medical (GMED)

Net Cash Position: $104.1 million (1.3% of Market Cap)

With operations spanning 64 countries and a portfolio of over 10 new products launched in 2023 alone, Globus Medical (NYSE: GMED) develops and sells implantable devices, surgical instruments, and technology solutions for spine, orthopedic, and neurosurgical procedures.

Why Does GMED Stand Out?

1. Average constant currency growth of 62.3% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
3. Earnings per share grew by 20.2% annually over the last five years and trumped its peers

At $58.66 per share, Globus Medical trades at 17.2x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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-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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