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 is one company with a net cash position that can leverage its balance sheet to grow and two that may struggle.
Two Stocks to Sell:
Westamerica Bancorporation (WABC)
Net Cash Position: $390.3 million (31.5% of Market Cap)
Founded in 1884 and serving communities from Mendocino County in the north to Kern County in the south, Westamerica Bancorporation (NASDAQ:WABC) provides banking services to individuals and small businesses throughout Northern and Central California.
Why Is WABC Not Exciting?
- Muted 6.8% annual net interest income growth over the last five years shows its demand lagged behind its banking peers
- Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 46.7 basis points (100 basis points = 1 percentage point)
- Performance over the past two years shows each sale was less profitable as its earnings per share dropped by 12.9% annually, worse than its revenue
Westamerica Bancorporation is trading at $49.62 per share, or 1.3x forward P/B. Read our free research report to see why you should think twice about including WABC in your portfolio.
NBT Bancorp (NBTB)
Net Cash Position: $111.9 million (5% of Market Cap)
Tracing its roots back to 1856 when it first opened its doors in Norwich, New York, NBT Bancorp (NASDAQ:NBTB) is a community-oriented financial institution providing banking, wealth management, and insurance services to individuals and businesses across the northeastern United States.
Why Does NBTB Fall Short?
- Sales trends were unexciting over the last five years as its 7.6% annual growth was below the typical banking company
- Net interest income trends were unexciting over the last five years as its 8.6% annual growth was below the typical banking firm
- Incremental sales over the last two years were less profitable as its 1.8% annual earnings per share growth lagged its revenue gains
At $43.77 per share, NBT Bancorp trades at 1.2x forward P/B. Check out our free in-depth research report to learn more about why NBTB doesn’t pass our bar.
One Stock to Buy:
Nubank (NU)
Net Cash Position: $6.69 billion (8.3% of Market Cap)
With nearly 94 million customers across Brazil, Mexico, and Colombia through its viral member-get-member referral program, Nubank (NYSE:NU) is a digital banking platform that offers financial services including spending, saving, investing, borrowing, and protection products to millions of customers across Latin America.
Why Should You Buy NU?
- Annual revenue growth of 41.1% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last two years have been highly profitable as its earnings per share increased by 72.8% annually, topping its revenue gains
Nubank’s stock price of $16.58 implies a valuation ratio of 18.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
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 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today.