1 Cash-Heavy Stock to Consider Right Now and 2 We Question

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 balances growth with stability and two that may struggle.

Two Stocks to Sell:

Dillard's (DDS)

Net Cash Position: $785.9 million (7.4% of Market Cap)

With stores located largely in the Southern and Western US, Dillard’s (NYSE:DDS) is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Why Are We Cautious About DDS?

1. Failure to add new stores points to soft demand and a focus on boosting sales at current locations
2. Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience
3. Falling earnings per share over the last three years has some investors worried as stock prices ultimately follow EPS over the long term

Dillard’s stock price of $678.99 implies a valuation ratio of 23.6x forward P/E. Check out our free in-depth research report to learn more about why DDS doesn’t pass our bar.

10x Genomics (TXG)

Net Cash Position: $395.1 million (15.8% of Market Cap)

Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ:TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.

Why Do We Think Twice About TXG?

1. 4.2% annual revenue growth over the last two years was slower than its healthcare peers
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Negative returns on capital show that some of its growth strategies have backfired

10x Genomics is trading at $19.88 per share, or 4.3x forward price-to-sales. If you’re considering TXG for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Intuitive Surgical (ISRG)

Net Cash Position: $4.91 billion (2.4% of Market Cap)

Pioneering minimally invasive surgery since its first da Vinci system was FDA-cleared in 2000, Intuitive Surgical (NASDAQ:ISRG) develops and manufactures robotic-assisted surgical systems that enable minimally invasive procedures across various medical specialties.

Why Does ISRG Catch Our Eye?

1. Products are seeing elevated demand as its system placement averaged 12.7% growth over the past two years
2. Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
3. Earnings per share grew by 20.9% annually over the last five years, massively outpacing its peers

At $570.99 per share, Intuitive Surgical trades at 63.1x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More

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Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. 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.