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. That said, here is one company with a net cash position that balances growth with stability and two that may struggle.
Two Healthcare Stocks to Sell:
Privia Health (PRVA)
Net Cash Position: $435.1 million (14.2% of Market Cap)
Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ:PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.
Why Are We Wary of PRVA?
- Revenue base of $2.04 billion puts it at a disadvantage compared to larger competitors exhibiting economies of scale
- Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital
- Push for growth has led to negative returns on capital, signaling value destruction
Privia Health is trading at $24.92 per share, or 26.8x forward P/E. If you’re considering PRVA for your portfolio, see our FREE research report to learn more.
Supernus Pharmaceuticals (SUPN)
Net Cash Position: $218.3 million (8.1% of Market Cap)
With a diverse portfolio of eight FDA-approved medications targeting neurological conditions, Supernus Pharmaceuticals (NASDAQ:SUPN) develops and markets treatments for central nervous system disorders including epilepsy, ADHD, Parkinson's disease, and migraine.
Why Do We Avoid SUPN?
- Sales trends were unexciting over the last five years as its 5.9% annual growth was below the typical healthcare company
- Modest revenue base of $681.5 million gives it less fixed cost leverage and fewer distribution channels than larger companies
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
Supernus Pharmaceuticals’s stock price of $47.16 implies a valuation ratio of 18.1x forward P/E. Check out our free in-depth research report to learn more about why SUPN doesn’t pass our bar.
One Healthcare Stock to Buy:
Oscar Health (OSCR)
Net Cash Position: $1.46 billion (33.3% of Market Cap)
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE:OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Are We Backing OSCR?
- Annual revenue growth of 39.7% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings per share grew by 30.3% annually over the last four years, massively outpacing its peers
- Free cash flow margin expanded by 12.8 percentage points over the last five years, providing additional flexibility for investments and share buybacks/dividends
At $16.48 per share, Oscar Health trades at 0.3x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Growth Stocks for this month. 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 Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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