2 cash-heavy stocks with impressive fundamentals and 1 that underwhelm
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.
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 can continue growing sustainably and one with hidden risks.
One stock to sell:
Marqeta (MQ)
Net Cash Position: $696.8 million (35.5% of Market Cap)
Powering the cards behind innovative fintech services like Block's Cash App, Marqeta (NASDAQ:MQ) provides a cloud-based platform that allows businesses to create customized payment card programs and process card transactions.
Why Do We Think Twice About MQ?
- Revenue increased by 11% annually over the last five years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds
- Extended payback periods on sales investments suggest the company’s platform isn’t resonating enough to drive efficient sales conversions
- Capital intensity will likely increase as its free cash flow margin is anticipated to drop by 8.9 percentage points over the next year
Marqeta’s stock price of $18.86 implies a valuation ratio of 2.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MQ.
Two stocks to buy:
Lyft (LYFT)
Net Cash Position: $619.4 million (9.7% of Market Cap)
Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada.
Why Do We Love LYFT?
- Has the opportunity to boost monetization through new features and premium offerings as its active riders have grown by 13.7% annually over the last two years
- Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 70.4% outpaced its revenue gains
- Free cash flow margin expanded by 24.8 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends
Lyft is trading at $16.96 per share, or 7.7x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Tutor Perini (TPC)
Net Cash Position: $806.5 million (20% of Market Cap)
Known for constructing the Philadelphia Eagles’ Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services.
Why Should You Buy TPC?
- Annual revenue growth of 18.2% over the past two years was outstanding, reflecting market share gains this cycle
- Free cash flow margin grew by 7.6 percentage points over the last five years, giving the company more chips to play with
- Historical investments are beginning to pay off as its returns on capital are growing
At $76.79 per share, Tutor Perini trades at 14.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-quality stocks for all market conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.