Nasdaq
华尔街日报2 Cash-Heavy Stocks with Competitive Advantages and 1 We Brush Off
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.
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 are two companies with net cash positions that balance growth with stability and one that may struggle.
One Stock to Sell:
TowneBank (TOWN)
Net Cash Position: $862 million (31.2% of Market Cap)
Founded in 1998 with a commitment to community-centered banking in the Hampton Roads region, TowneBank (NASDAQ:TOWN) is a community-focused financial institution providing banking, lending, and wealth management services to individuals and businesses in Virginia and North Carolina.
Why Are We Wary of TOWN?
- Muted 5.1% annual revenue growth over the last five years shows its demand lagged behind its banking peers
- Annual net interest income growth of 7.2% over the last five years was below our standards for the banking sector
- Estimated tangible book value per share growth of 2.3% for the next 12 months implies profitability will slow from its two-year trend
TowneBank is trading at $35.48 per share, or 1.2x forward P/B. Read our free research report to see why you should think twice about including TOWN in your portfolio.
Two Stocks to Watch:
Zeta Global (ZETA)
Net Cash Position: $188.3 million (4.1% of Market Cap)
Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE:ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.
Why Do We Love ZETA?
- Billings have averaged 36.4% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
- Market share will likely rise over the next 12 months as its expected revenue growth of 31.6% is robust
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $18.57 per share, Zeta Global trades at 2.7x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Globus Medical (GMED)
Net Cash Position: $293.4 million (2.5% 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 Do We Like GMED?
- Average constant currency growth of 58.8% over the past two years demonstrates its ability to grow internationally despite currency fluctuations
- Earnings per share have massively outperformed its peers over the last five years, increasing by 21.6% annually
- GMED is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Globus Medical’s stock price of $87.33 implies a valuation ratio of 22.1x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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