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. That said, here is one company with a net cash position that balances growth with stability and two best left off your watchlist.
Two Stocks to Sell:
Tesla (TSLA)
Net Cash Position: $35.68 billion (2.5% of Market Cap)
Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ: TSLA) is an electric vehicle company accelerating the world’s transition to sustainable energy.
Why Do We Think TSLA Will Underperform?
- Tesla's scale advantage in EV production leads to gross margins that exceed incumbents such as General Motors and Ford. However, a softer macroeconomic backdrop and tariff pressures have weighed on automobile sales, which are highly cyclical.
- The company's execution ability is a question mark given its long history of delays, such as the Cybertruck and Robotaxi launches. Its sizeable investments in projects with uncertain return timelines, like Optimus, also raise skepticism from investors.
- On the bright side, Tesla's Megapack product solves a critical problem for utilities needing renewable energy storage solutions. This innovation has made the energy segment the most profitable and fastest-growing business line for the company.
Tesla is trading at $382.55 per share, or 198.6x forward price-to-earnings. If you’re considering TSLA for your portfolio, see our FREE research report to learn more.
FB Financial (FBK)
Net Cash Position: $810.6 million (30.6% of Market Cap)
Founded in 1906 and operating through more than a century of economic cycles, FB Financial (NYSE: FBK) operates FirstBank, providing commercial and consumer banking services across Tennessee, Kentucky, Alabama, and North Georgia.
Why Does FBK Fall Short?
- Muted 1.9% annual revenue growth over the last five years shows its demand lagged behind its banking peers
- Estimated net interest income growth of 4.9% for the next 12 months implies demand will slow from its five-year trend
- Earnings per share lagged its peers over the last five years as they only grew by 2.4% annually
At $51.15 per share, FB Financial trades at 1.2x forward P/B. Dive into our free research report to see why there are better opportunities than FBK.
One Stock to Buy:
Badger Meter (BMI)
Net Cash Position: $222.5 million (5.1% of Market Cap)
The developer of the world’s first frost-proof water meter in 1905, Badger Meter (NYSE: BMI) provides water control and measure equipment to various industries.
Why Will BMI Beat the Market?
- Market share has increased this cycle as its 16.6% annual revenue growth over the last five years was exceptional
- Additional sales over the last two years increased its profitability as the 23.6% annual growth in its earnings per share outpaced its revenue
- Strong free cash flow margin of 16.1% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
Badger Meter’s stock price of $148.47 implies a valuation ratio of 28.9x 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
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.
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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
