Companies with more cash than debt often have stronger financial flexibility, making them attractive in uncertain markets. Without interest payments being less of a worry, these businesses can invest more in growth, innovation, or buybacks and dividends.
Finding the best investments isn’t always easy, and that’s why we started StockStory. That said, here are three companies with net cash positions that can leverage their balance sheets to grow.
CrowdStrike (CRWD)
Net Cash Position: $3.83 billion (3.3% of Market Cap)
Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ:CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.
Why Does CRWD Catch Our Eye?
- Ability to secure long-term commitments with customers is evident in its 26.1% ARR growth over the last year
- Forecasted revenue growth of 21.5% for the next 12 months indicates its momentum over the last three years is sustainable
- Robust free cash flow margin of 24.7% gives it many options for capital deployment
CrowdStrike’s stock price of $468 implies a valuation ratio of 23.2x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Powell (POWL)
Net Cash Position: $388.6 million (16.9% of Market Cap)
Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE:POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.
Why Are We Positive On POWL?
- Impressive 34.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Operating margin improvement of 17.7 percentage points over the last five years demonstrates its ability to scale efficiently
- Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 209% annually
Powell is trading at $191.19 per share, or 12.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Molina Healthcare (MOH)
Net Cash Position: $1.28 billion (8% of Market Cap)
Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.
Why Are We Fans of MOH?
- Annual revenue growth of 19.4% over the last five years was superb and indicates its market share increased during this cycle
- Scale advantages are evident in its $41.87 billion revenue base, which provides operating leverage when demand is strong
- Earnings per share have massively outperformed its peers over the last five years, increasing by 14.6% annually
At $296.88 per share, Molina Healthcare trades at 11.6x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
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