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.
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 balance growth with stability and one that may struggle.
One Stock to Sell:
Graco (GGG)
Net Cash Position: $462.3 million (3.5% of Market Cap)
Founded in 1926, Graco (NYSE:GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.
Why Do We Think Twice About GGG?
- Muted 2.6% annual revenue growth over the last two years shows its demand lagged behind its industrials peers
- Earnings growth over the last two years fell short of the peer group average as its EPS only increased by 1.5% annually
- Diminishing returns on capital suggest its earlier profit pools are drying up
At $81.73 per share, Graco trades at 24.4x forward P/E. If you’re considering GGG for your portfolio, see our FREE research report to learn more.
Two Stocks to Watch:
monday.com (MNDY)
Net Cash Position: $835.3 million (21.6% of Market Cap)
With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ:MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.
Why Will MNDY Beat the Market?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Prominent and differentiated software leads to a best-in-class gross margin of 88.7%
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
monday.com’s stock price of $91.25 implies a valuation ratio of 2.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
UMB Financial (UMBF)
Net Cash Position: $2.95 billion (26.6% of Market Cap)
With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.
Why Are We Positive on UMBF?
- Market share has increased this cycle as its 38.1% annual revenue growth over the last two years was exceptional
- Market share has increased this cycle as its 21.7% annual net interest income growth over the last five years was exceptional
- Net interest margin increased by 78.4 basis points (100 basis points = 1 percentage point) over the last two years, giving the firm more capital to invest or return to shareholders
UMB Financial is trading at $145.92 per share, or 1.4x forward P/B. Is now the right time to buy? See for yourself 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-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.