2 Cash-Heavy Stocks on Our Watchlist and 1 Facing Challenges

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.

Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. Keeping that in mind, here are two companies with net cash positions that balance growth with stability and one best left off your watchlist.

One Stock to Sell:

Live Oak Bancshares (LOB)

Net Cash Position: $762.8 million (40.4% of Market Cap)

Founded during the 2008 financial crisis with a vision to reimagine small business banking through technology, Live Oak Bancshares (NYSE:LOB) is a bank holding company that specializes in providing online banking services and SBA-guaranteed loans to small businesses across targeted industries nationwide.

Why Does LOB Fall Short?

1. Net interest margin of 3.3% reflects its high servicing and capital costs
2. Incremental sales over the last two years were much less profitable as its earnings per share fell by 6.4% annually while its revenue grew

At $41.05 per share, Live Oak Bancshares trades at 1.5x forward P/B. Check out our free in-depth research report to learn more about why LOB doesn’t pass our bar.

Two Stocks to Watch:

Cal-Maine (CALM)

Net Cash Position: $1.10 billion (28.4% of Market Cap)

Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.

Why Should CALM Be on Your Watchlist?

1. Annual revenue growth of 18.5% over the last three years was superb and indicates its market share is rising
2. Performance over the past three years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Robust free cash flow margin of 22.5% gives it many options for capital deployment, and its growing cash flow gives it even more resources to deploy

Cal-Maine is trading at $81.91 per share, or 26.4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

IonQ (IONQ)

Net Cash Position: $1.05 billion (8.5% of Market Cap)

Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE:IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.

Why Are We Fans of IONQ?

1. Annual revenue growth of 101% over the last two years was superb and indicates its market share increased during this cycle
2. Market share is on track to rise over the next 12 months as its 115% projected revenue growth implies demand will accelerate from its two-year trend
3. Adjusted operating margin improvement of 4,567.4 percentage points over the last five years demonstrates its ability to scale efficiently

IonQ’s stock price of $35.21 implies a valuation ratio of 60.9x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged 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).

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