Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
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 best left off your watchlist.
Two Stocks to Sell:
Zevia (ZVIA)
Net Cash Position: $26.1 million (26.4% of Market Cap)
With a primary focus on soda but also a presence in energy drinks and teas, Zevia (NYSE: ZVIA) is a better-for-you beverage company.
Why Are We Hesitant About ZVIA?
- Flat sales over the last three years suggest it must innovate and find new ways to grow
- Subscale operations are evident in its revenue base of $169.3 million, meaning it has fewer distribution channels than its larger rivals
- Poor expense management has led to operating margin losses
Zevia’s stock price of $1.75 implies a valuation ratio of 0.7x forward price-to-sales. If you’re considering ZVIA for your portfolio, see our FREE research report to learn more.
Connection (CNXN)
Net Cash Position: $404.1 million (22.1% of Market Cap)
Starting as a small computer products seller in 1982 and evolving into a Fortune 1000 company, Connection (NASDAQ: CNXN) is a technology solutions provider that helps businesses and government agencies design, purchase, implement, and manage their IT infrastructure and systems.
Why Are We Cautious About CNXN?
- Muted 2.5% annual revenue growth over the last two years shows its demand lagged behind its business services peers
- Earnings per share lagged its peers over the last two years as they only grew by 6.9% annually
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
Connection is trading at $72.42 per share, or 19.1x forward P/E. Check out our free in-depth research report to learn more about why CNXN doesn’t pass our bar.
One Stock to Watch:
NetApp (NTAP)
Net Cash Position: $1.06 billion (3.4% of Market Cap)
Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.
Why Do We Like NTAP?
- Average billings growth of 7.3% over the past two years enhances its liquidity and shows there is steady demand for its products
- Share repurchases over the last five years enabled its annual earnings per share growth of 15% to outpace its revenue gains
- Strong free cash flow margin of 20.3% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business
At $153.49 per share, NetApp trades at 17.6x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
