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. That said, here are two companies with net cash positions that balance growth with stability and one best left off your watchlist.
One Stock to Sell:
Ameris Bancorp (ABCB)
Net Cash Position: $1.39 billion (26.9% of Market Cap)
Tracing its roots back to 1971 and expanding significantly through both organic growth and strategic acquisitions, Ameris Bancorp (NYSE: ABCB) is a financial holding company that provides a full range of banking services to retail and commercial customers across select markets in the southeastern United States.
Why Are We Wary of ABCB?
- 7.7% annual net interest income growth over the last five years was slower than its banking peers
- Estimated net interest income growth of 5.5% for the next 12 months implies demand will slow from its five-year trend
- Earnings per share lagged its peers over the last five years as they only grew by 8.6% annually
Ameris Bancorp’s stock price of $75.85 implies a valuation ratio of 1.3x forward P/B. Check out our free in-depth research report to learn more about why ABCB doesn’t pass our bar.
Two Stocks to Buy:
Monster (MNST)
Net Cash Position: $2.47 billion (3.3% of Market Cap)
Founded in 2002 as a natural soda and juice company, Monster Beverage (NASDAQ: MNST) is a pioneer of the energy drink category, and its Monster Energy brand targets a young, active demographic.
Why Is MNST a Good Business?
- Excellent operating margin of 28% highlights the efficiency of its business model, and its rise over the last year was fueled by some leverage on its fixed costs
- MNST is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business
- Industry-leading 37.3% return on capital demonstrates management’s skill in finding high-return investments
Monster is trading at $76.93 per share, or 35.5x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free for active Edge members.
Bowhead Specialty (BOW)
Net Cash Position: $247.5 million (26.3% of Market Cap)
Named after the Arctic bowhead whale known for navigating challenging waters, Bowhead Specialty Holdings (NYSE: BOW) is a specialty insurance company that provides customized coverage for complex and high-risk commercial sectors.
Why Is BOW a Top Pick?
- Strong 37.9% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Annual book value per share growth of 74.5% over the past two years was outstanding, reflecting strong capital accumulation this cycle
At $28.64 per share, Bowhead Specialty trades at 2.1x forward P/B. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
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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).
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