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. That said, here are two companies with net cash positions that can continue growing sustainably and one best left off your watchlist.
One Stock to Sell:
Rush Street Interactive (RSI)
Net Cash Position: $328.1 million (10.8% of Market Cap)
Specializing in online casino gaming and sports betting, Rush Street Interactive (NYSE: RSI) is an operator of digital gaming platforms.
Why Should You Dump RSI?
- Sales trends were unexciting over the last five years as its 28.5% annual growth was below the typical consumer discretionary company
- Responsiveness to unforeseen market trends is restricted due to its substandard operating margin profitability
- Free cash flow margin is forecasted to grow by 1.2 percentage points in the coming year, potentially giving the company more chips to play with
At $28.30 per share, Rush Street Interactive trades at 43x forward P/E. To fully understand why you should be careful with RSI, check out our full research report (it’s free).
Two Stocks to Watch:
DoorDash (DASH)
Net Cash Position: $2.25 billion (3.3% of Market Cap)
Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ: DASH) operates an on-demand food delivery platform.
Why Is DASH a Top Pick?
- Orders have increased by an average of 22.9% annually, giving it the potential for margin-accretive growth if it can develop valuable complementary products and features
- Notable projected revenue growth of 25.6% for the next 12 months hints at market share gains
- Incremental sales significantly boosted profitability as its annual earnings per share growth of 179% over the last three years outstripped its revenue performance
DoorDash’s stock price of $167.50 implies a valuation ratio of 18.9x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Coinbase (COIN)
Net Cash Position: $8.91 billion (21.1% of Market Cap)
Widely regarded as the face of crypto, Coinbase (NASDAQ: COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.
Why Is COIN Interesting?
- Market share has increased over the last two years as its 28.5% annual revenue growth was exceptional
- Platform is difficult to replicate at scale and results in a best-in-class gross margin of 85.9%
- COIN is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Coinbase is trading at $166.90 per share, or 15.9x forward EV/EBITDA. 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 meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
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 Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
