A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.
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 is one company with a net cash position that balances growth with stability and two that may struggle.
Two Stocks to Sell:
Dillard's (DDS)
Net Cash Position: $785.9 million (7.4% of Market Cap)
With stores located largely in the Southern and Western US, Dillard’s (NYSE: DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.
Why Are We Cautious About DDS?
- Failure to add new stores points to soft demand and a focus on boosting sales at current locations
- Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
- Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term
Dillard’s stock price of $678.99 implies a valuation ratio of 23.6x forward P/E. Check out our free in-depth research report to learn more about why DDS doesn’t pass our bar.
10x Genomics (TXG)
Net Cash Position: $395.1 million (15.8% of Market Cap)
Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ: TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.
Why Do We Think Twice About TXG?
- 4.2% annual revenue growth over the last two years was slower than its healthcare peers
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Negative returns on capital show that some of its growth strategies have backfired
10x Genomics is trading at $19.88 per share, or 4.3x forward price-to-sales. If you’re considering TXG for your portfolio, see our FREE research report to learn more.
One Stock to Watch:
Intuitive Surgical (ISRG)
Net Cash Position: $4.91 billion (2.4% of Market Cap)
Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ: ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.
Why Does ISRG Catch Our Eye?
- Products are seeing elevated demand as its system placement averaged 12.7% growth over the past two years
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Earnings per share grew by 20.9% annually over the last five years, massively outpacing its peers
At $570.99 per share, Intuitive Surgical trades at 63.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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.
