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.
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 continue growing sustainably and one with hidden risks.
One Stock to Sell:
Eastern Bank (EBC)
Net Cash Position: $505.3 million (15.4% of Market Cap)
Founded in 1818 as one of America's oldest mutual banks before converting to a public company in 2020, Eastern Bankshares (NASDAQ: EBC) operates as a bank holding company providing commercial and retail banking services primarily in Massachusetts, New Hampshire, and Rhode Island.
Why Is EBC Not Exciting?
- Annual revenue growth of 1.5% over the last five years was below our standards for the banking sector
- Tangible book value per share tumbled by 6.8% annually over the last four years, showing banking sector trends are working against its favor during this cycle
- Forecasted tangible book value per share decline of 5.5% for the upcoming 12 months implies profitability will deteriorate significantly
At $16.54 per share, Eastern Bank trades at 1x forward P/B. Read our free research report to see why you should think twice about including EBC in your portfolio.
Two Stocks to Buy:
Airbnb (ABNB)
Net Cash Position: $7.36 billion (9.4% of Market Cap)
Founded by Brian Chesky and Joe Gebbia in their San Francisco apartment, Airbnb (NASDAQ: ABNB) is the world’s largest online marketplace for lodging, primarily homestays.
Why Are We Backing ABNB?
- Nights and Experiences Booked have grown by 10% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
- Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Robust free cash flow margin of 38.9% gives it many options for capital deployment
Airbnb is trading at $128.29 per share, or 18.4x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
Raymond James (RJF)
Net Cash Position: $4.95 billion (15% of Market Cap)
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Why Is RJF a Top Pick?
- Solid 11.2% annual revenue growth over the last five years indicates its offering’s solve complex business issues
- Share repurchases have increased shareholder returns as its annual earnings per share growth of 19.6% exceeded its revenue gains over the last five years
- Annual tangible book value per share growth of 16.1% over the last two years was superb and indicates its capital strength increased during this cycle
Raymond James’s stock price of $164.96 implies a valuation ratio of 15.7x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Kadant (+351% 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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