1 Cash-Heavy Stock for Long-Term Investors and 2 to Think Twice About
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.
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 that may struggle.
Net Cash Position: $338.3 million (15.5% of Market Cap)
With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors.
Why Are We Out on FORM?
Annual revenue growth of 5.3% over the last five years was below our standards for the semiconductor sector
Projected sales growth of 2.1% for the next 12 months suggests sluggish demand
Free cash flow margin shrank by 5.6 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
FormFactor is trading at $28.77 per share, or 17x forward price-to-earnings. Check out our free in-depth research report to learn more about why FORM doesn't pass our bar.
Net Cash Position: $118.6 million (14.9% of Market Cap)
Born from the Founder's idea of making a toy frog with a glue gun, Stratasys (NASDAQ:SSYS) offers 3D printers and related materials, software, and services to many industries.
Why Should You Sell SSYS?
Sales tumbled by 2.1% annually over the last five years, showing market trends are working against its favor during this cycle
Earnings per share decreased by more than its revenue over the last five years, partly because it diluted shareholders
Cash burn makes us question whether it can achieve sustainable long-term growth
Stratasys's stock price of $9.60 implies a valuation ratio of 27.2x forward price-to-earnings. To fully understand why you should be careful with SSYS, check out our full research report (it's free).
Net Cash Position: $27.23 million (2.3% of Market Cap)
Founded in 2009, Integral Ad Science (NASDAQ:IAS) provides digital advertising verification and optimization solutions, ensuring that ads are viewable by real people in brand-safe environments across various platforms and devices.
Why Does IAS Stand Out?
Software platform has product-market fit given the rapid recovery of its customer acquisition costs
Healthy operating margin of 11.4% shows it's a well-run company with efficient processes, and its operating leverage amplified its profits over the last year
Strong free cash flow margin of 21.9% enables it to reinvest or return capital consistently
At $7.14 per share, Integral Ad Science trades at 2x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it's free.
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Associated Press
39 minutes ago
- Associated Press
INVESTOR DEADLINE APPROACHING: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Iovance Biotherapeutics
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Iovance To Contact Him Directly To Discuss Their Options If you suffered losses exceeding $100,000 in Iovance between August 8, 2024 and May 8, 2025 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). [You may also click here for additional information] New York, New York--(Newsfile Corp. - June 8, 2025) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Iovance Biotherapeutics, Inc. ('Iovance' or the 'Company') (NASDAQ: IOVA) and reminds investors of the July 14, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. [ This image cannot be displayed. Please visit the source: ] Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the true state of Iovance's growth potential; notably, that it was not equipped to generate and drive demand or was otherwise ill equipped to capitalize upon the purported existing demand for its treatments through its network of approved treatment centers. On July 25, 2024, Iovance announced its financial results for the second quarter of fiscal 2024 and reduced its revenue guidance for the full fiscal year 2024. The Company attributed its results and lowered guidance on 1) 'the iCTC completed annual scheduled maintenance in December' and 'capacity was reduced by more than half for about 1 month,' 2) "[l]ower Proleukin sales' than the company expected, and 3) 'the variable pace at which ATCs began treatment patients.' Investors and analysts reacted immediately to Iovance's revelation. The price of Iovance's common stock declined dramatically. From a closing market price of $3.17 per share on May 8, 2025, Iovance's stock price fell to $1.75 per share on May 9, 2025, a decline of about 44.795% in the span of just a single day. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. Faruqi & Faruqi, LLP also encourages anyone with information regarding Iovance's conduct to contact the firm, including whistleblowers, former employees, shareholders and others. To learn more about the Iovance class action, go to or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Follow us for updates on LinkedIn, on X, or on Facebook. Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP ( ). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner. To view the source version of this press release, please visit
Yahoo
an hour ago
- Yahoo
Borderlands Mexico: Renegotiating USMCA may boost North American trade
Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Renegotiating USMCA may boost North American trade; Automotive supplier opens manufacturing facility in Guanajuato; Humanscale expands manufacturing operations in Nogales; and New import cold storage facility slated for Texas border city. The United States-Mexico-Canada Agreement will mark its fifth anniversary on July 1. The importance of the USMCA cannot be overstated as it governs trade between the U.S. and its two most significant trading partners, supporting over $1.5 trillion in annual commerce. Since taking office for his second term, President Donald Trump has indicated a desire to renegotiate or possibly terminate the USMCA, after previously touting the agreement as a significant economic USMCA faces a critical juncture as it approaches its first six-year review in 2026, though negotiations are already underway. Mexican senior officials have been making regular visits to Washington since early 2023. Jorge Gonzalez Henrichsen, CEO of The Nearshore Co., said accelerating renegotiations of the USMCA may bring much-needed certainty to investors. 'What makes me the most happy about it being revised earlier … is that it will bring certainty, because the Trump administration has created such a level of uncertainty that investment really froze from November [2024] to April [2025] companies that were thinking of going to Mexico,' Henrichsen told FreightWaves in an interview. He said while it's unclear what the Trump administration will do with the USMCA, the trade agreement has been a success in terms of creating more commerce among the three was the top U.S. trade partner for the second consecutive year in 2024, totaling a record-breaking $840 billion. Canada ranked No. 2 for trade with the U.S. in 2024 at $761 billion, and China ranked third at $582 billion. The Nearshore Co., based in Brownsville, Texas, is an international trade and development firm that helps companies set up shelter operations in Mexico. 'The North American Free Trade Agreement (NAFTA) was signed in 1994, and the USMCA was 2020, so after 26 years, the economy changed a lot, and I do think that moving from NAFTA to USMCA was positive,' Henrichsen said. 'I think for everyone, it was positive.' One of the biggest changes from NAFTA to the USMCA involved automotive content rules. Under NAFTA, regional automobile content requirements stood at 62.5%, but USMCA raised this threshold to 75% with new wage requirements. It meant that 75% of the vehicle's parts must be sourced from the U.S., Canada or Mexico, or all three. 'One of the drivers for nearshoring to Mexico during COVID was that a lot of these automotive suppliers and original equipment manufacturers were from Asia,' Henrichsen said. 'So you had these OEMs saying, 'I have to move from 62.5% to 75%. You have got to relocate to North America.' It was basically driven by that change, to comply with the local concept.' Labor rights provisions in Mexico were substantially strengthened in USMCA, driving labor reforms in the country that aimed to improve worker protections.'One of the other big changes between USMCA and NAFTA is the labor rights. We had a new labor reform, and now we have unions that are more democratic,' he said. The USMCA also introduced entirely new elements that were not part of NAFTA, including provisions on digital trade and e-commerce and a dispute resolution mechanism, Henrichsen noted. While he views the USMCA as a positive change from NAFTA, there is still room for improving the agreement, Henrichsen said. 'One of the things that I would like to see discussed is how the three countries can deepen the supply chain resilience and the North American competitiveness as a trade bloc,' Henrichsen said. 'I would say the No. 1 driver by far of companies that reach out to us is that they cannot find labor at competitive costs and in large numbers in the U.S. So they're looking to Mexico to find this labor.' While Mexico may have lower labor costs than the U.S. and Canada, it still faces challenges with infrastructure and security. If the U.S., Mexico and Canada can work together as a trade bloc, then all three countries could benefit, Henrichsen said. 'Mexico has big challenges on infrastructure, for example … power, electricity generation and transmission. And so why don't we work as a team,' Henrichsen said. 'Like Mexico says, 'Guys, we can provide labor in Mexico for U.S. companies, for Canadian companies. But, we need support … for infrastructure, bridges to cross to the U.S.' All that kind of nearshoring supply chain thinking as a bloc … is on my wish list.' With an investment of $50 million, China-based TYW Manufacturing recently opened a plant in Irapuato, Mexico. The facility will generate about 500 jobs and manufacture electronic dashboards for Kia and Stellantis targeting markets in South Korea and the U.S., according to a news release. Irapuato is in central Mexico in the state of Guanajuato, a hub for automotive manufacturing in the country. TYW Manufacturing is a subsidiary of Heilongjiang TYW Electronics, a company based in Suihua, China, according to Mexico Business News. New York-based Humanscale recently completed a $30 million expansion of its operation in Nogales, Mexico. The expansion creates 300 jobs and adds a 3,000-square-foot facility that will produce metal components – work previously performed in Asia. Humanscale is a high-end office furniture manufacturer. The company has four factories, including in the U.S., Ireland and Mexico. The company has been in Nogales since 2017. The Mexican city is directly across the border from Nogales, Arizona. Public officials and business leaders recently held a groundbreaking to inaugurate construction of a fresh produce cold storage warehouse along the Texas-Mexico border. Known as the 'From Mexico Cold Storage Warehouse,' the facility will feature 10 high-efficiency loading docks and temperature-controlled storage rooms. It will be designed to support growing demand in cross-border produce distribution,' according to a news release. 'This new facility will bring innovation, efficiency, and opportunity to our produce district, and we are proud to welcome From Mexico as a valued partner to our thriving city as we continue to invest in cold storage infrastructure,' Victor Perez, president and CEO of the Pharr Economic Development Corp., said in a statement. Officials did not provide a timeline for the facility's construction. The Pharr-Reynosa International Bridge handles over 65% of the nation's fresh produce imports from Mexico, contributing to more than $47 billion in annual trade. The post Borderlands Mexico: Renegotiating USMCA may boost North American trade appeared first on FreightWaves.
Yahoo
an hour ago
- Yahoo
President Donald Trump's One, Big, Beautiful Bill Is Missing His "No Tax on Social Security" Promise -- and There's Likely a Good Reason Why
Key Points Most retirees rely on their Social Security income, in some capacity, to make ends meet. Though Trump proposed ending the tax on Social Security benefits prior to and after his November election, the president's flagship tax and spending bill is missing this key promise. Social Security's long-term financial outlook likely played a key role in keeping the tax on benefits in place. In April, more than 52 million retired-worker beneficiaries brought home an average Social Security check totaling just shy of $2,000. Though this is a relatively modest monthly payout, a majority of retirees need it, in some capacity, to cover their expenses. For 23 consecutive years, pollster Gallup has been surveying retirees to determine how much they rely on their Social Security income. Consistently between 80% and 90% of respondents told Gallup that it was a "major" or "minor" income source. In other words, up to 9 out of 10 retirees would potentially be challenged to make ends meet if Social Security didn't exist. For the program's tens of millions of beneficiaries, nothing is more important than knowing how much they'll receive each month and seeing this payout increase over time via cost-of-living adjustments (COLAs) to keep pace with inflation. While on the campaign trail, as well as following his January inauguration, President Donald Trump outlined a highly popular proposal that would have given roughly half of all Social Security beneficiaries a raise. However, the flagship tax and spending bill for Trump's second term, known as the One, Big, Beautiful Bill, is missing this key promise -- and there's likely a good reason why. Trump's One, Big, Beautiful Bill reneges on a key Social Security promise Trump's One, Big, Beautiful Bill is lengthy (more than 1,000 pages) and targets a number of his campaign promises. While this is far from an extensive list, this tax and spending bill, as introduced in the House of Representatives, would: Permanently extend the individual tax cuts enacted by Trump's Tax Cuts and Jobs Act, which was signed into law in December 2017. These individual tax cuts will sunset on Dec. 31, 2025, unless extended. Increase the state and local tax (aka, SALT) deduction to $40,000 for taxpayers earning less than $500,000. The SALT deduction is currently capped at $10,000. Introduce a four-year (2025-2028) tax exemption on overtime pay and tips, up to specific income thresholds for individual taxpayers and couples filing jointly. Expand annual contribution limits for Health Savings Accounts (HSAs) for select low and middle earners. Authorize low and middle earners aged 65 and up to deduct an additional $4,000 on their federal tax return if filing individually, or $8,000 for couples filing jointly.