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.
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 can continue growing sustainably and one best left off your watchlist.
One Stock to Sell:
Universal Display (OLED)
Net Cash Position: $516.4 million (14.2% of Market Cap)
Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.
Why Are We Cautious About OLED?
- Muted 1.2% annual revenue growth over the last two years shows its demand lagged behind its semiconductor peers
- Estimated sales growth of 6.2% for the next 12 months is soft and implies weaker demand
- Earnings per share have grown by 7.8% annually over the last five years, slightly higher than the industry average
At $78.08 per share, Universal Display trades at 17.5x forward P/E. Read our free research report to see why you should think twice about including OLED in your portfolio.
Two Stocks to Watch:
Plexus (PLXS)
Net Cash Position: $68.99 million (1% of Market Cap)
With over 20,000 team members across 26 global facilities, Plexus (NASDAQ:PLXS) designs, manufactures, and services complex electronic products for companies in aerospace/defense, healthcare, and industrial sectors.
Why Is PLXS on Our Radar?
- Demand for the next 12 months is expected to accelerate above its two-year trend as Wall Street forecasts robust revenue growth of 17.7%
- Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
- Industry-leading 15.4% return on capital demonstrates management’s skill in finding high-return investments
Plexus’s stock price of $259.22 implies a valuation ratio of 29.8x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Northern Trust (NTRS)
Net Cash Position: $14.12 billion (41.4% of Market Cap)
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ:NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Why Does NTRS Stand Out?
- Share repurchases over the last two years enabled its annual earnings per share growth of 32.1% to outpace its revenue gains
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Northern Trust is trading at $184.30 per share, or 16x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.
Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.