2 Cash-Heavy Stocks with Competitive Advantages and 1 We Find Risky

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 are two companies with net cash positions that balance growth with stability and one with hidden risks.

One Stock to Sell:

G-III (GIII)

Net Cash Position: $6.00 million (0.5% of Market Cap)

Founded as a small leather goods business, G-III (NASDAQ:GIII) is a fashion and apparel conglomerate with a diverse portfolio of brands.

Why Should You Dump GIII?

1. Sales tumbled by 1.2% annually over the last two years, showing consumer trends are working against its favor
2. Projected sales decline of 3.9% over the next 12 months indicates demand will continue deteriorating
3. Below-average returns on capital indicate management struggled to find compelling investment opportunities

G-III is trading at $27.25 per share, or 11.8x forward P/E. Dive into our free research report to see why there are better opportunities than GIII.

Two Stocks to Watch:

Guidewire Software (GWRE)

Net Cash Position: $444.2 million (2.5% of Market Cap)

With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE:GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.

Why Does GWRE Stand Out?

1. Billings have averaged 21.2% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Guidewire Software’s stock price of $210.25 implies a valuation ratio of 13x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Hims & Hers Health (HIMS)

Net Cash Position: -$488.3 million (-6.4% of Market Cap)

Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE:HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.

Why Are We Positive On HIMS?

1. Business is winning new contracts that can potentially increase in value as its customer base averaged 38.9% growth over the past two years
2. Free cash flow margin increased by 21.3 percentage points over the last five years, giving the company more capital to invest or return to shareholders
3. Rising returns on capital show the company is starting to reap the benefits of its past investments

At $33.73 per share, Hims & Hers Health trades at 27.8x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.

The names generating the next wave of massive growth are right here in 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 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

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