1 Cash-Heavy Stock with Promising Prospects and 2 We Avoid

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.

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 is one company with a net cash position that can continue growing sustainably and two that may struggle.

Two Stocks to Sell:

Clarus (CLAR)

Net Cash Position: $27.53 million (21.2% of Market Cap)

Initially a financial services business, Clarus (NASDAQ:CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.

Why Do We Pass on CLAR?

1. Sales trends were unexciting over the last five years as its 4.2% annual growth was below the typical consumer discretionary company
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Clarus is trading at $3.38 per share, or 23x forward P/E. If you’re considering CLAR for your portfolio, see our FREE research report to learn more.

Crane (CR)

Net Cash Position: $374.7 million (3.4% of Market Cap)

Based in Connecticut, Crane (NYSE:CR) is a diversified manufacturer of engineered industrial products, including fluid handling, and aerospace technologies.

Why Does CR Worry Us?

1. Annual sales declines of 5.2% for the past five years show its products and services struggled to connect with the market during this cycle
2. Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy
3. Performance over the past two years was negatively impacted by new share issuances as its earnings per share grew slower than its revenue

At $191.75 per share, Crane trades at 31x forward P/E. Read our free research report to see why you should think twice about including CR in your portfolio.

One Stock to Watch:

NetApp (NTAP)

Net Cash Position: $486 million (2.1% of Market Cap)

Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ:NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.

Why Are We Fans of NTAP?

1. Billings growth has averaged 7.2% over the past two years, indicating a healthy pipeline of new contracts that should drive future revenue increases
2. Adjusted operating margin expanded by 5.9 percentage points over the last five years as it scaled and became more efficient
3. Strong free cash flow margin of 19.7% enables it to reinvest or return capital consistently, and its improved cash conversion implies it’s becoming a less capital-intensive business

NetApp’s stock price of $115.66 implies a valuation ratio of 14.3x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.

Stocks We Like Even More

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 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

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