2 Cash-Heavy Stocks with Exciting Potential and 1 We Brush Off

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. Keeping that in mind, here are two companies with net cash positions that can continue growing sustainably and one with hidden risks.

One Stock to Sell:

Hope Bancorp (HOPE)

Net Cash Position: $248.3 million (16.9% of Market Cap)

With roots in serving Korean-American communities and now expanded to a multi-ethnic clientele across 12 states, Hope Bancorp (NASDAQ:HOPE) operates Bank of Hope, providing commercial and retail banking services with a focus on serving multi-ethnic communities across the United States.

Why Do We Avoid HOPE?

1. Products and services are facing end-market challenges during this cycle, as seen in its flat sales over the last five years
2. Loans are facing end-market challenges during this cycle, as seen in its flat net interest income over the last five years
3. Sales over the last five years were less profitable as its earnings per share fell by 4% annually while its revenue was flat

Hope Bancorp’s stock price of $11.45 implies a valuation ratio of 0.7x forward P/B. If you’re considering HOPE for your portfolio, see our FREE research report to learn more.

Two Stocks to Buy:

Shopify (SHOP)

Net Cash Position: $5.23 billion (2.4% of Market Cap)

Starting with just three people selling snowboards online in 2004, Shopify (NYSE:SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.

Why Will SHOP Beat the Market?

1. Average billings growth of 30.8% over the last year enhances its liquidity and shows there is steady demand for its products
2. Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
3. User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs

At $170.09 per share, Shopify trades at 16.4x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free for active Edge members.

Pure Storage (PSTG)

Net Cash Position: $1.31 billion (5.7% of Market Cap)

Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.

Why Is PSTG a Top Pick?

1. Ability to secure long-term commitments with customers is evident in its 21.2% average ARR growth over the past two years
2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 44.3% outpaced its revenue gains
3. Robust free cash flow margin of 17% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

Pure Storage is trading at $69.37 per share, or 30.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

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-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.