A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth. Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
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 is one company with a net cash position that can continue growing sustainably and two that may struggle.
Two Stocks to Sell:
Movado (MOV)
Net Cash Position: $144.8 million (26.4% of Market Cap)
With its watches displayed in 20 museums around the world, Movado (NYSE: MOV) is a watchmaking company with a portfolio of watch brands and accessories.
Why Are We Bearish on MOV?
- Flat sales over the last five years suggest it must innovate and find new ways to grow
- Poor free cash flow margin of 6.5% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
Movado is trading at $33.58 per share, or 9.9x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than MOV.
Marcus & Millichap (MMI)
Net Cash Position: $142.4 million (13% of Market Cap)
Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.
Why Do We Avoid MMI?
- Annual sales declines of 1.5% for the past five years show its products and services struggled to connect with the market
- Projected 7.3 percentage point decline in its free cash flow margin next year reflects the company’s plans to increase its investments to defend its market position
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Marcus & Millichap’s stock price of $29.04 implies a valuation ratio of 44.2x forward P/E. If you’re considering MMI for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
GE Vernova (GEV)
Net Cash Position: $10.27 billion (4% of Market Cap)
Born from the energy business of industrial giant General Electric in a 2023 spin-off, GE Vernova (NYSE: GEV) designs, manufactures, and services power generation equipment and grid technologies to help customers build more reliable and sustainable electric systems.
Why Is GEV a Top Pick?
- Annual revenue growth of 10.7% over the past two years was outstanding, reflecting market share gains this cycle
- Share repurchases have amplified shareholder returns as its annual earnings per share growth of 169% exceeded its revenue gains over the last two years
- Free cash flow margin increased by 45.3 percentage points over the last four years, giving the company more capital to invest or return to shareholders
At $965.01 per share, GE Vernova trades at 45.3x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.
