2 Cash-Heavy Stocks with Competitive Advantages and 1 Facing Headwinds

Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.

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. Keeping that in mind, here are two companies with net cash positions that can continue growing sustainably and one best left off your watchlist.

One Stock to Sell:

Figs (FIGS)

Net Cash Position: $187.4 million (10.3% of Market Cap)

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE:FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Why Do We Think FIGS Will Underperform?

1. Sluggish trends in its active customers suggest customers aren’t adopting its solutions as quickly as the company hoped
2. Poor free cash flow margin of 6.4% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Rising returns on capital show management is making relatively better investments

Figs is trading at $11.08 per share, or 108.7x forward P/E. Dive into our free research report to see why there are better opportunities than FIGS.

Two Stocks to Watch:

Rivian (RIVN)

Net Cash Position: $638 million (2.9% of Market Cap)

The manufacturer of Amazon’s delivery trucks, Rivian (NASDAQ:RIVN) designs, manufactures, and sells electric vehicles and commercial delivery vans.

Why Are We Fans of RIVN?

1. Market share has increased this cycle as its 24.2% annual revenue growth over the last two years was exceptional
2. Additional sales over the last two years increased its profitability as the 33.4% annual growth in its earnings per share outpaced its revenue

At $18.03 per share, Rivian trades at 3.5x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.

HCI Group (HCI)

Net Cash Position: $921.3 million (41.1% of Market Cap)

Starting as a Florida "take-out" insurer that assumed policies from the state-backed Citizens Property Insurance Corporation, HCI Group (NYSE:HCI) provides property and casualty insurance, primarily homeowners coverage, while leveraging proprietary technology to improve underwriting and claims processing.

Why Will HCI Beat the Market?

1. Strong 28% annualized net premiums earned expansion over the last two years shows it’s capturing market share this cycle
2. Annual book value per share growth of 65.1% over the last two years was superb and indicates its capital strength increased during this cycle
3. Notable projected book value per share growth of 36.9% for the next 12 months hints at strong capital generation

HCI Group’s stock price of $173.12 implies a valuation ratio of 2.5x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check 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 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-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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