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.
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 leverage their balance sheets to grow and one best left off your watchlist.
One Stock to Sell:
Northern Trust (NTRS)
Net Cash Position: $31.76 billion (114% 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 Fall Short?
- 5.8% annual revenue growth over the last five years was slower than its financials peers
- Earnings growth over the last five years fell short of the peer group average as its EPS only increased by 9.3% annually
At $148.46 per share, Northern Trust trades at 15.4x forward P/E. Check out our free in-depth research report to learn more about why NTRS doesn’t pass our bar.
Two Stocks to Watch:
Ameriprise Financial (AMP)
Net Cash Position: $6.48 billion (14% of Market Cap)
Founded in 1894 and spun off from American Express in 2005, Ameriprise Financial (NYSE:AMP) provides financial planning, wealth management, asset management, and insurance products to help individuals and institutions achieve their financial goals.
Why Should You Buy AMP?
- Share buybacks catapulted its annual earnings per share growth to 22.8%, which outperformed its revenue gains over the last five years
- Balance sheet strength has increased this cycle as its 84.7% annual tangible book value per share growth over the last two years was exceptional
- Stellar return on equity showcases management’s ability to surface highly profitable business ventures
Ameriprise Financial’s stock price of $507.05 implies a valuation ratio of 12.6x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.
ServisFirst Bancshares (SFBS)
Net Cash Position: $120.3 million (2.5% of Market Cap)
Founded in 2005 with a focus on serving underserved mid-sized businesses, ServisFirst Bancshares (NYSE:SFBS) is a bank holding company that provides commercial banking services to businesses and professionals through its subsidiary ServisFirst Bank.
Why Could SFBS Be a Winner?
- Annual revenue growth of 14.2% over the last two years was superb and indicates its market share increased during this cycle
- Exciting net interest income outlook for the upcoming 12 months calls for 19.2% growth, an acceleration from its five-year trend
- Annual tangible book value per share growth of 13.1% over the last five years was superb and indicates its capital strength increased during this cycle
ServisFirst Bancshares is trading at $86.44 per share, or 2.2x forward P/B. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in 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 244% over the last five years (as of June 30, 2025).
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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.