2 Cash-Heavy Stocks with Promising Prospects and 1 We Ignore
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. Keeping that in mind, here are two companies with net cash positions that can leverage their balance sheets to grow and one best left off your watchlist.
One Stock to Sell:
First Busey (BUSE)
Net Cash Position: $171.1 million (7.1% of Market Cap)
Tracing its roots back to 1868 during America's post-Civil War reconstruction era, First Busey (NASDAQ:BUSE) is a bank holding company that provides commercial and retail banking, wealth management, and payment technology solutions across Illinois, Missouri, Florida, and Indiana.
Why Does BUSE Worry Us?
- Net interest margin of 3.5% is well below other banks, signaling its loans aren’t very profitable
- Performance over the past five years shows its incremental sales were less profitable, as its 1.6% annual earnings per share growth trailed its revenue gains
- Estimated tangible book value per share decline of 5.3% for the next 12 months implies a challenging profitability environment
First Busey is trading at $29.12 per share, or 1.1x forward P/B. Dive into our free research report to see why there are better opportunities than BUSE.
Two Stocks to Watch:
Atlassian (TEAM)
Net Cash Position: $6.60 million (0% of Market Cap)
Started by two Australian university friends who funded their startup with credit cards, Atlassian (NASDAQ:TEAM) provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.
Why Does TEAM Stand Out?
- Impressive 22.8% annual revenue growth over the last two years indicates it’s winning market share
- Billings growth has averaged 20.5% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Superior software functionality and low servicing costs lead to a best-in-class gross margin of 85.6%
Atlassian’s stock price of $179.37 implies a valuation ratio of 6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Braze (BRZE)
Net Cash Position: $314 million (11% of Market Cap)
With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ:BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement.
Why Are We Positive on BRZE?
- Billings growth has averaged 30.2% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Forecasted revenue growth of 18.5% for the next 12 months indicates its momentum over the last two years is sustainable
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $25.26 per share, Braze trades at 2.6x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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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 Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.