logo
2 Cash-Heavy Stocks to Keep an Eye On and 1 to Brush Off

2 Cash-Heavy Stocks to Keep an Eye On and 1 to Brush Off

Yahoo28-04-2025

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.
Not all businesses with cash are winners, and that's why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here are two companies with net cash positions that can continue growing sustainably and one that may struggle.
Net Cash Position: $283.2 million (1.7% of Market Cap)
Founded by two individuals involved in the development of leading procurement software Ariba, Guidewire (NYSE:GWRE) offers insurance companies a software-as-a-service platform to help sell their products and manage their workflows.
Why Are We Wary of GWRE?
Annual revenue growth of 12.4% over the last three years was below our standards for the software sector
Gross margin of 61.4% is below its competitors, leaving less money to invest in areas like marketing and R&D
Customer acquisition costs take a while to recoup, making it difficult to justify sales and marketing investments that could increase revenue
Guidewire is trading at $197.01 per share, or 13.2x forward price-to-sales. Check out our free in-depth research report to learn more about why GWRE doesn't pass our bar.
Net Cash Position: $1.36 billion (6.5% of Market Cap)
Founded by three MIT engineers at a local Cambridge bar, Toast (NYSE:TOST) provides integrated point-of-sale (POS) hardware, software, and payments solutions for restaurants.
Why Do We Like TOST?
ARR growth averaged 30.6% over the last year, showing customers are willing to take multi-year bets on its offerings
Notable projected revenue growth of 22.6% for the next 12 months hints at market share gains
Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
At $36.70 per share, Toast trades at 3.6x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it's free.
Net Cash Position: $93.78 million (11.3% of Market Cap)
Protecting everything from schools to government facilities since 1969, Napco Security Technologies (NASDAQ:NSSC) manufactures electronic security devices, access control systems, and communication services for intrusion and fire alarm systems.
Why Are We Backing NSSC?
Impressive 11.8% annual revenue growth over the last five years indicates it's winning market share this cycle
Robust free cash flow margin of 16.3% gives it many options for capital deployment, and its rising cash conversion increases its margin of safety
Returns on capital are growing as management capitalizes on its market opportunities
Napco's stock price of $22.72 implies a valuation ratio of 14.8x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it's free.
Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out 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 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 Axon (+711% five-year return). Find your next big winner with StockStory today for free.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Lunda Construction Awarded $67.2 Million I-94 and I-394 Interchange Project in Minneapolis
Lunda Construction Awarded $67.2 Million I-94 and I-394 Interchange Project in Minneapolis

Yahoo

time28 minutes ago

  • Yahoo

Lunda Construction Awarded $67.2 Million I-94 and I-394 Interchange Project in Minneapolis

BLACK RIVER FALLS, Wis., June 11, 2025--(BUSINESS WIRE)--Tutor Perini Corporation (NYSE: TPC) (the "Company"), a leading civil, building and specialty construction company, announced today that its subsidiary, Lunda Construction Company, has been awarded a contract by the Minnesota Department of Transportation valued at approximately $67.2 million for the I-94 and I-394 Interchange Project in Minneapolis. The scope of work includes repairing 34 bridges and ramps along I-394 and I-94 between downtown Minneapolis and Highway 100. The project also includes maintenance work on the Dunwoody Boulevard ramp, replacing the deck for the Penn Avenue bridge that crosses over I-394, and other improvements along I-394 between downtown Minneapolis and Highway 100. Work is expected to begin in July 2025 with substantial completion anticipated in the summer of 2027. The contract value has been added to the Company's backlog in the second quarter of 2025. About Tutor Perini Corporation Tutor Perini Corporation is a leading civil, building and specialty construction company offering diversified general contracting and design-build services to private customers and public agencies throughout the world. We have provided construction services since 1894 and have established a strong reputation within our markets by executing large, complex projects on time and within budget while adhering to strict safety and quality control measures. We offer general contracting, pre-construction planning and comprehensive project management services, and have strong expertise in delivering design-bid-build, design-build, construction management, and public-private partnership (P3) projects. We often self-perform multiple project components, including earthwork, excavation, concrete forming and placement, steel erection, electrical, mechanical, plumbing, heating, ventilation and air conditioning (HVAC), and fire protection. View source version on Contacts Tutor Perini CorporationJorge Casado, 818-362-8391Senior Vice President, Investor Relations and Corporate Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Analyst Kelly Shi from Jefferies Maintained a Buy Rating on Insmed Incorporated (INSM)
Analyst Kelly Shi from Jefferies Maintained a Buy Rating on Insmed Incorporated (INSM)

Yahoo

time29 minutes ago

  • Yahoo

Analyst Kelly Shi from Jefferies Maintained a Buy Rating on Insmed Incorporated (INSM)

Insmed Incorporated (NASDAQ:INSM) is among the 13 Biotech Stocks with Huge Upside Potential. Kelly Shi of Jefferies has given Insmed Incorporated (NASDAQ:INSM) a buy recommendation, stating that she is confident in the TPIP treatment's impending Phase 2 data for pulmonary arterial hypertension. A biopharmaceutical research team taking notes in front of a laboratory's microscope. Shi anticipates a substantial decrease in pulmonary vascular resistance, the main outcome of the trial, of 20%, which is regarded as a definite success. If the results are encouraging, TPIP may replace Tyvaso, the current standard treatment. On June 4, Wells Fargo reaffirmed its Buy recommendation, with a price objective of $107. Shi points out that TPIP's once-daily dosage is a significant benefit over Tyvaso's four-times-daily schedule, which could increase adherence and make it more appealing to patients as well as physicians. The efficacy potential of TPIP is supported by interim study results that show additional advantages in six-minute walk distance (6MWD). Shi expects significant market penetration in light of these considerations, which could lead to an increase in Insmed Incorporated (NASDAQ:INSM)'s valuation. Both analysts highlight that if future trial results live up to predictions, TPIP has the potential to completely change the way that PAHs are treated. Insmed Incorporated (NASDAQ:INSM) is a biopharmaceutical firm that improves the lives of individuals suffering from serious and rare diseases. While we acknowledge the potential of INSM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

US Appeals Court Confirms Patent Validity of Acadia's Parkinson's Medication
US Appeals Court Confirms Patent Validity of Acadia's Parkinson's Medication

Yahoo

time29 minutes ago

  • Yahoo

US Appeals Court Confirms Patent Validity of Acadia's Parkinson's Medication

ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is among the 13 Biotech Stocks with Huge Upside Potential. It declared that the U.S. Court of Appeals maintained the legality of its composition of matter patent for the medication Nuplazid, which treats psychosis in Parkinson's disease. A research scientist looking through a microscope in a lab, symbolizing the biopharmaceutical company's innovative approach to medical treatments. The verdict supports ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) in its legal struggle with India-based MSN Laboratories and upholds a December 2023 ruling by the U.S. District Court of Delaware. A later patent claim with the same priority date cannot be declared invalid by the court. According to CEO Catherine Owen Adams, Nuplazid's patent protection has been extended to 2030. The 34 mg capsule is also protected by a separate formulation patent that runs through 2038. The U.S. FDA authorized Nuplazid in 2016 to treat delusions and hallucinations linked to psychosis in Parkinson's disease. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)'s legal stance in a different action against Aurobindo Pharma was further strengthened by the latest decision. When taken as a whole, these results solidify the company's portfolio of intellectual property in the face of generic competition, guaranteeing prolonged market exclusivity for its flagship neurological medication. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biopharmaceutical firm that specializes in the creation and marketing of medications that treat uncommon diseases and disorders of the central nervous system. While we acknowledge the potential of ACAD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store