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.
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. Keeping that in mind, here are two companies with net cash positions that can leverage their balance sheets to grow and one with hidden risks.
One Stock to Sell:
Old Dominion Freight Line (ODFL)
Net Cash Position: $248.1 million (0.5% 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 Are We Cautious About ODFL?
- Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
- Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term
- Waning returns on capital imply its previous profit engines are losing steam
At $219.29 per share, Old Dominion Freight Line trades at 38.4x forward P/E. To fully understand why you should be careful with ODFL, check out our full research report (it’s free).
Two Stocks to Buy:
Planet Labs (PL)
Net Cash Position: $242.8 million (2% of Market Cap)
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE: PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
Why Are We Backing PL?
- Backlog has averaged 143% growth over the past two years, showing it has a pipeline of unfulfilled orders that will support revenue in the future
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 48.9% over the last two years outstripped its revenue performance
- Free cash flow profile has moved into positive territory over the last five years, indicating the company has passed a significant test
Planet Labs is trading at $31.53 per share, or 437.9x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.
QuinStreet (QNST)
Net Cash Position: $93.63 million (13.4% of Market Cap)
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
Why Is QNST a Good Business?
- Annual revenue growth of 47.2% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 628% over the last two years outstripped its revenue performance
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
QuinStreet’s stock price of $14.57 implies a valuation ratio of 9.4x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.
