Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here is one company with a net cash position that balances growth with stability and two with hidden risks.
Two Stocks to Sell:
Benchmark (BHE)
Net Cash Position: $23.39 million (0.9% of Market Cap)
Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE: BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.
Why Does BHE Fall Short?
- 1.2% annual revenue growth over the last two years was slower than its business services peers
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 0.9% for the last five years
- ROIC of 7.4% reflects management’s challenges in identifying attractive investment opportunities, and its falling returns suggest its earlier profit pools are drying up
Benchmark is trading at $73.69 per share, or 22.7x forward P/E. Dive into our free research report to see why there are better opportunities than BHE.
Columbia Banking System (COLB)
Net Cash Position: $955 million (11% of Market Cap)
Created through the merger of two Pacific Northwest banking institutions with deep regional roots, Columbia Banking System (NASDAQ: COLB) operates Umpqua Bank, providing commercial, consumer, and wealth management services across eight western states.
Why Do We Think Twice About COLB?
- Estimated net interest income growth of 4.6% for the next 12 months implies demand will slow from its five-year trend
- Earnings per share fell by 4.4% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable
- Products and services are facing significant credit quality challenges during this cycle as tangible book value per share has declined by 1.7% annually over the last five years
At $30.70 per share, Columbia Banking System trades at 1.1x forward P/B. If you’re considering COLB for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
Shopify (SHOP)
Net Cash Position: $4.77 billion (2.4% of Market Cap)
Starting with just three people selling snowboards online in 2004, Shopify (NASDAQ: SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Why Will SHOP Outperform?
- Average billings growth of 33.1% over the last year enhances its liquidity and shows there is steady demand for its products
- Market share will likely rise over the next 12 months as its expected revenue growth of 28.1% is robust
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Shopify’s stock price of $154.32 implies a valuation ratio of 11.5x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
