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.
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 three companies with net cash positions to steer clear of and a few alternatives to consider.
Old Dominion Freight Line (ODFL)
Net Cash Position: $243.9 million (0.6% of Market Cap)
With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ: ODFL) delivers less-than-truckload (LTL) and full-container load freight.
Why Does ODFL Fall Short?
- Declining unit sales over the past two years show it’s struggled to increase its sales volumes and had to rely on price increases
- Earnings per share have dipped by 5.7% annually over the past two years, which is concerning because stock prices follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
At $188.38 per share, Old Dominion Freight Line trades at 29x forward P/E. If you’re considering ODFL for your portfolio, see our FREE research report to learn more.
American Outdoor Brands (AOUT)
Net Cash Position: $1.27 million (0.6% of Market Cap)
Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ: AOUT) is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.
Why Is AOUT Risky?
- Annual sales declines of 7.1% for the past five years show its products and services struggled to connect with the market
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 6 percentage points
- Rising returns on capital show management is making relatively better investments
American Outdoor Brands is trading at $17.77 per share, or 31.4x forward P/E. Check out our free in-depth research report to learn more about why AOUT doesn’t pass our bar.
STAAR Surgical (STAA)
Net Cash Position: $112.6 million (10.1% of Market Cap)
With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ: STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.
Why Are We Out on STAA?
- Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last two years
- Subscale operations are evident in its revenue base of $339.6 million, meaning it has fewer distribution channels than its larger rivals
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
STAAR Surgical’s stock price of $22.15 implies a valuation ratio of 22.1x forward P/E. Dive into our free research report to see why there are better opportunities than STAA.
Stocks We Like More
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
