1 Cash-Heavy Stock Worth Your Attention and 2 We Question

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.

Just because a business has cash doesn’t mean it’s a good investment. Luckily, StockStory is here to help you separate the winners from the losers. That said, here is one company with a net cash position that balances growth with stability and two best left off your watchlist.

Two Stocks to Sell:

Moderna (MRNA)

Net Cash Position: $4.39 billion (46.9% of Market Cap)

Rising to global prominence during the COVID-19 pandemic with one of the first effective vaccines, Moderna (NASDAQ:MRNA) develops messenger RNA (mRNA) medicines that direct the body's cells to produce proteins with therapeutic or preventive benefits for various diseases.

Why Do We Pass on MRNA?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 46.3% annually over the last two years
2. Free cash flow margin dropped by 242.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

At $24.05 per share, Moderna trades at 4.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than MRNA.

West Pharmaceutical Services (WST)

Net Cash Position: $286.2 million (1.6% of Market Cap)

Founded in 1923 and serving as a critical link in the pharmaceutical supply chain, West Pharmaceutical Services (NYSE:WST) manufactures specialized packaging, containment systems, and delivery devices for injectable drugs and healthcare products.

Why Does WST Worry Us?

1. Sales trends were unexciting over the last two years as its 1.6% annual growth was below the typical healthcare company
2. Day-to-day expenses have swelled relative to revenue over the last five years as its adjusted operating margin fell by 3.9 percentage points
3. Eroding returns on capital suggest its historical profit centers are aging

West Pharmaceutical Services is trading at $253.92 per share, or 37.1x forward P/E. Read our free research report to see why you should think twice about including WST in your portfolio.

One Stock to Buy:

Nubank (NU)

Net Cash Position: $9.80 billion (13.6% 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?

1. Annual revenue growth of 44.9% over the past two years was outstanding, reflecting market share gains this cycle
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 99.9% annually, topping its revenue gains

Nubank’s stock price of $14.90 implies a valuation ratio of 21.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% 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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