1 Cash-Heavy Stock to Own for Decades and 2 We Find Risky

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.

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 is one company with a net cash position that balances growth with stability and two best left off your watchlist.

Two Stocks to Sell:

Strategic Education (STRA)

Net Cash Position: $44.65 million (2.3% of Market Cap)

Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ:STRA) is a career-focused higher education provider.

Why Do We Think STRA Will Underperform?

1. Performance surrounding its domestic students has lagged its peers
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 7.1% annually
3. Underwhelming 3.7% return on capital reflects management’s difficulties in finding profitable growth opportunities

Strategic Education is trading at $81.43 per share, or 13.4x forward P/E. Dive into our free research report to see why there are better opportunities than STRA.

Blink Charging (BLNK)

Net Cash Position: $19.53 million (13.8% of Market Cap)

One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.

Why Does BLNK Fall Short?

1. Sales trends were unexciting over the last two years as its 5.4% annual growth was below the typical industrials company
2. Negative free cash flow raises questions about the return timeline for its investments
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

At $1.36 per share, Blink Charging trades at 1.1x forward price-to-sales. To fully understand why you should be careful with BLNK, check out our full research report (it’s free).

One Stock to Buy:

Robinhood (HOOD)

Net Cash Position: $461 million (0.4% of Market Cap)

With a mission to democratize finance, Robinhood (NASDAQ:HOOD) is an online consumer finance platform known for its commission-free stock and crypto trading.

Why Do We Love HOOD?

1. Customer spending is rising as the company has focused on monetization over the last two years, leading to 40.9% annual growth in its average revenue per user
2. Additional sales over the last three years increased its profitability as the 54.6% annual growth in its earnings per share outpaced its revenue
3. Strong free cash flow margin of 67% enables it to reinvest or return capital consistently, and its rising cash conversion increases its margin of safety

Robinhood’s stock price of $117.36 implies a valuation ratio of 50.3x forward EV/EBITDA. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at 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 Exlservice (+354% 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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