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:
PACCAR (PCAR)
Net Cash Position: $9.07 billion (17.7% of Market Cap)
Founded more than a century ago, PACCAR (NASDAQ: PCAR) designs and manufactures commercial trucks of various weights and sizes for the commercial trucking industry.
Why Is PCAR Not Exciting?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Projected sales decline of 7.4% over the next 12 months indicates demand will continue deteriorating
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
At $96.68 per share, PACCAR trades at 19.7x forward P/E. Read our free research report to see why you should think twice about including PCAR in your portfolio.
Two Stocks to Watch:
EMCOR (EME)
Net Cash Position: $230.5 million (0.8% of Market Cap)
Through its network of over 70 subsidiaries, EMCOR (NYSE: EME) provides electrical, mechanical, and building construction and services
Why Are We Bullish on EME?
- Annual revenue growth of 15.9% over the last two years was superb and indicates its market share increased during this cycle
- Share repurchases over the last two years enabled its annual earnings per share growth of 47.1% to outpace its revenue gains
- Returns on capital are climbing as management makes more lucrative bets
EMCOR’s stock price of $668 implies a valuation ratio of 25x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
Intuitive Surgical (ISRG)
Net Cash Position: $4.91 billion (2.5% of Market Cap)
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Should ISRG Be on Your Watchlist?
- Products are seeing elevated demand as its system placement averaged 12.7% growth over the past two years
- Projected revenue growth of 14.2% for the next 12 months suggests its momentum from the last two years will persist
- Earnings growth has trumped its peers over the last five years as its EPS has compounded at 20.9% annually
Intuitive Surgical is trading at $539.02 per share, or 58.9x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% 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
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
