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 are two companies with net cash positions that balance growth with stability and one with hidden risks.
One Stock to Sell:
Vishay Precision (VPG)
Net Cash Position: $35.32 million (8.2% 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 Think VPG Will Underperform?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.2% annually over the last two years
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 17.4% annually
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Vishay Precision’s stock price of $32.40 implies a valuation ratio of 31.8x forward P/E. To fully understand why you should be careful with VPG, check out our full research report (it’s free for active Edge members).
Two Stocks to Watch:
Oscar Health (OSCR)
Net Cash Position: $2.30 billion (41.1% of Market Cap)
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Should You Buy OSCR?
- Impressive 47% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
- Earnings per share grew by 19.3% annually over the last four years and trumped its peers
At $21.57 per share, Oscar Health trades at 142.3x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
First Bancorp (FBNC)
Net Cash Position: $619 million (28.5% of Market Cap)
Founded during the Great Depression in 1934 and originally known as Montgomery Bancorp, First Bancorp (NASDAQ: FBNC) is a community-oriented commercial bank providing a wide range of financial services to businesses and individuals in North and South Carolina.
Why Is FBNC on Our Radar?
- Market share has increased this cycle as its 12% annual net interest income growth over the last five years was exceptional
- Incremental sales over the last five years have been more profitable as its earnings per share increased by 7.4% annually, topping its revenue gains
- Balance sheet strength has increased this cycle as its 15.5% annual tangible book value per share growth over the last two years was exceptional
First Bancorp is trading at $52.31 per share, or 1.3x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 9 Market-Beating Stocks. 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
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