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.

Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here are two companies with net cash positions that balance growth with stability and one that may struggle.

One Stock to Sell:

F5 (FFIV)

Net Cash Position: $964.9 million (6.1% of Market Cap)

Originally named after the F5 tornado, the most powerful on the meteorological scale, F5 (NASDAQ: FFIV) provides security and delivery solutions that protect applications across cloud, data center, and edge environments for large organizations.

Why Are We Out on FFIV?

1. Challenges in acquiring and retaining long-term customers were reflected in its average ARR declines of 7.1% over the last year
2. Estimated sales growth of 4.5% for the next 12 months is soft and implies weaker demand
3. Operating margin didn’t move over the last year, showing it couldn’t increase its efficiency

At $278.42 per share, F5 trades at 4.9x forward price-to-sales. Read our free research report to see why you should think twice about including FFIV in your portfolio.

Two Stocks to Watch:

Palo Alto Networks (PANW)

Net Cash Position: $4.16 billion (3.4% of Market Cap)

Founded in 2005 by security visionary Nir Zuk who sought to reimagine firewall technology, Palo Alto Networks (NASDAQ: PANW) provides AI-powered cybersecurity platforms that protect organizations' networks, clouds, and endpoints from sophisticated threats.

Why Are We Positive On PANW?

1. Exciting sales outlook for the upcoming 12 months calls for 28.1% growth, an acceleration from its two-year trend
2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Palo Alto Networks is trading at $148.99 per share, or 8.5x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

AMD (AMD)

Net Cash Position: $7.33 billion (2.2% of Market Cap)

Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ: AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.

Why Is AMD a Good Business?

1. Annual revenue growth of 28.8% over the last five years was superb and indicates its market share increased during this cycle
2. Projected revenue growth of 34.6% for the next 12 months is above its two-year trend, pointing to accelerating demand
3. Earnings per share have massively outperformed its peers over the last five years, increasing by 26.4% annually

AMD’s stock price of $199.87 implies a valuation ratio of 30.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in our Top 6 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.