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 two companies with net cash positions that balance growth with stability and one best left off your watchlist.

One Stock to Sell:

Qualys (QLYS)

Net Cash Position: $364 million (7.6% of Market Cap)

Originally developed to address the growing complexity of IT security in the cloud era, Qualys (NASDAQ: QLYS) provides a cloud-based platform that helps organizations identify, manage, and protect their IT assets from cyber threats across on-premises, cloud, and mobile environments.

Why Are We Cautious About QLYS?

1. ARR growth averaged a weak 10.1% over the last year, suggesting that competition is pulling some attention away from its software
2. Estimated sales growth of 8.1% for the next 12 months implies demand will slow from its two-year trend
3. Operating margin expanded by 2.3 percentage points over the last year as it scaled and became more efficient

Qualys is trading at $134.14 per share, or 6.8x forward price-to-sales. Check out our free in-depth research report to learn more about why QLYS doesn’t pass our bar.

Two Stocks to Watch:

HubSpot (HUBS)

Net Cash Position: $1.21 billion (6.7% of Market Cap)

Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE: HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.

Why Could HUBS Be a Winner?

1. Average billings growth of 19.8% over the last year enhances its liquidity and shows there is steady demand for its products
2. Software is difficult to replicate at scale and results in a top-tier gross margin of 84.1%
3. Free cash flow margin is on track to jump by 1.9 percentage points next year, meaning the company will have more resources to pursue growth initiatives, repurchase shares, or pay dividends

HubSpot’s stock price of $344.85 implies a valuation ratio of 5.4x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.

Axos Financial (AX)

Net Cash Position: $1.49 billion (28.7% of Market Cap)

Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE: AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.

Why Is AX a Top Pick?

1. Impressive 17.6% annual net interest income growth over the last five years indicates it’s winning market share this cycle
2. Differentiated product suite results in a Strong performance of its loan book is reflected in its High-yielding loan book and low cost of funds lead to a best-in-class net interest margin of 4.8%
3. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

At $92 per share, Axos Financial trades at 1.6x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.