- LIVE QUOTES
- LEARN
- HELP
Nasdaq
Wall Street JournalEN
1 Cash-Heavy Stock to Own for Decades and 2 We Ignore
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.
Just because a business has cash doesn’t mean it’s a good investment. Luckily, StockStory is here to help you separate the winners from the losers. That said, here is one company with a net cash position that can continue growing sustainably and two with hidden risks.
Two Stocks to Sell:
Movado (MOV)
Net Cash Position: $102 million (21.1% of Market Cap)
With its watches displayed in 20 museums around the world, Movado (NYSE:MOV) is a watchmaking company with a portfolio of watch brands and accessories.
Why Do We Pass on MOV?
- Sales trends were unexciting over the last five years as its 4.7% annual growth was below the typical consumer discretionary company
- Poor free cash flow margin of 4.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Movado is trading at $21.83 per share, or 13.2x forward P/E. Dive into our free research report to see why there are better opportunities than MOV.
Expeditors (EXPD)
Net Cash Position: $629.8 million (3% of Market Cap)
Expeditors (NYSE:EXPD) offers air and ocean freight as well as brokerage services.
Why Are We Cautious About EXPD?
- Large revenue base makes it harder to increase sales quickly, and its annual revenue growth of 3.3% over the last two years was below our standards for the industrials sector
- High input costs result in an inferior gross margin of 13.4% that must be offset through higher volumes
- Diminishing returns on capital suggest its earlier profit pools are drying up
Expeditors’s stock price of $156.93 implies a valuation ratio of 26.7x forward P/E. If you’re considering EXPD for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
WEBTOON (WBTN)
Net Cash Position: $558.3 million (31% of Market Cap)
Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ:WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.
Why Will WBTN Beat the Market?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 7.2% annual sales growth over the last two years
- Adjusted operating margin expansion of 11 percentage points over the last four years shows the company optimized its expenses
- Additional sales over the last two years increased its profitability as the 75.9% annual growth in its earnings per share outpaced its revenue
At $13.79 per share, WEBTOON trades at 63.3x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
Stocks We Like Even More
Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.