2 Cash-Heavy Stocks to Keep an Eye On and 1 We Question

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 leverage their balance sheets to grow and one best left off your watchlist.

One Stock to Sell:

MasterCraft (MCFT)

Net Cash Position: $65.4 million (18.8% of Market Cap)

Started by a waterskiing instructor, MasterCraft (NASDAQ:MCFT) specializes in designing, manufacturing, and selling sport boats.

Why Do We Avoid MCFT?

1. Performance surrounding its boats sold has lagged its peers
2. Poor free cash flow margin of 11.1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
3. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned

MasterCraft is trading at $21.38 per share, or 16.6x forward P/E. Check out our free in-depth research report to learn more about why MCFT doesn’t pass our bar.

Two Stocks to Watch:

Coupang (CPNG)

Net Cash Position: $2.28 billion (5.5% of Market Cap)

Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".

Why Do We Like CPNG?

1. Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 11.2% annually over the last two years
2. Performance over the past three years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 35.4% outpaced its revenue gains
3. Free cash flow margin increased by 9.1 percentage points over the last few years, giving the company more capital to invest or return to shareholders

Coupang’s stock price of $22.74 implies a valuation ratio of 19.8x forward EV/EBITDA. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

Natera (NTRA)

Net Cash Position: $857.7 million (2.6% of Market Cap)

Founded in 2003 as Gene Security Network before rebranding in 2012, Natera (NASDAQ:NTRA) develops and commercializes genetic tests for prenatal screening, cancer detection, and organ transplant monitoring using its proprietary cell-free DNA technology.

Why Do We Love NTRA?

1. Products are seeing elevated demand as its tests processed averaged 19.6% growth over the past two years
2. Adjusted operating margin expanded by 32 percentage points over the last two years as it scaled and became more efficient
3. Free cash flow margin is now positive, indicating the company has passed a significant test

At $245.21 per share, Natera trades at 13.2x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.

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 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.