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.
Financial flexibility is valuable, but it’s not everything - at StockStory, we help you find the stocks that can not only survive but also outperform. That said, here are two companies with net cash positions that balance growth with stability and one that may struggle.
One Stock to Sell:
EverQuote (EVER)
Net Cash Position: $142.9 million (14.9% of Market Cap)
Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
Why Are We Wary of EVER?
- Highly competitive market means it’s on the never-ending treadmill of sales and marketing spend
EverQuote’s stock price of $26.72 implies a valuation ratio of 10x forward EV/EBITDA. If you’re considering EVER for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
ServiceNow (NOW)
Net Cash Position: $3.01 billion (1.7% of Market Cap)
Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow (NYSE:NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.
Why Is NOW a Top Pick?
- Demand is healthy as its current remaining performance obligations (cRPO) have averaged 21.8% growth over the last year, showing it’s securing new contracts for services yet to be fulfilled
- Disciplined cost controls and effective management resulted in a strong trailing 12-month operating margin of 13.9%, and it turbocharged its profits by achieving some fixed cost leverage
- Strong free cash flow margin of 31.6% enables it to reinvest or return capital consistently
At $855.76 per share, ServiceNow trades at 11.9x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Jack Henry (JKHY)
Net Cash Position: $6.87 million (0.1% of Market Cap)
Founded in 1976 by two entrepreneurs who saw the need for specialized banking software in the early days of financial computing, Jack Henry & Associates (NASDAQ:JKHY) provides technology solutions that help banks and credit unions innovate, differentiate, and compete while serving the evolving needs of their accountholders.
Why Should JKHY Be on Your Watchlist?
- Additional sales over the last two years increased its profitability as the 15.3% annual growth in its earnings per share outpaced its revenue
- Industry-leading 23.8% return on equity demonstrates management’s skill in finding high-return investments
Jack Henry is trading at $180.23 per share, or 28.7x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check 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 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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