2 Cash-Heavy Stocks to Target This Week and 1 Facing Headwinds

Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.

Financial flexibility is valuable, but it’s not everything - at StockStory, we help you find the stocks that can not only survive but also outperform. That said, here are two companies with net cash positions that can leverage their balance sheets to grow and one with hidden risks.

One Stock to Sell:

NVR (NVR)

Net Cash Position: $891.4 million (3.9% of Market Cap)

Known for its unique land acquisition strategy, NVR (NYSE:NVR) is a respected homebuilder and mortgage company in the United States.

Why Should You Dump NVR?

1. Product roadmap and go-to-market strategy need to be reconsidered as its backlog has averaged 3.4% declines over the past two years
2. Incremental sales over the last two years were much less profitable as its earnings per share fell by 2.8% annually while its revenue grew
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

NVR’s stock price of $8,088 implies a valuation ratio of 18.3x forward P/E. To fully understand why you should be careful with NVR, check out our full research report (it’s free).

Two Stocks to Watch:

Charles Schwab (SCHW)

Net Cash Position: $15 billion (8.5% of Market Cap)

Founded in 1971 as a disruptive force challenging Wall Street's high fees and limited access, Charles Schwab (NYSE:SCHW) is a wealth management and brokerage firm that provides investment services, banking, and financial advice to individual investors and independent advisors.

Why Is SCHW a Good Business?

1. Market share has increased this cycle as its 15.4% annual revenue growth over the last five years was exceptional
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. ROE punches in at 14.4%, illustrating management’s expertise in identifying profitable investments

Charles Schwab is trading at $99.48 per share, or 18.4x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Customers Bancorp (CUBI)

Net Cash Position: $2.71 billion (108% of Market Cap)

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp (NYSE:CUBI) is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Why Does CUBI Stand Out?

1. Annual net interest income growth of 13.2% over the last five years beat the sector average and underscores the value of its loans
2. Operating profits are forecasted to increase over the next year as it scales and becomes more productive
3. Annual tangible book value per share growth of 16.9% over the past five years was outstanding, reflecting strong capital accumulation this cycle

At $73.17 per share, Customers Bancorp trades at 1.1x forward P/B. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.

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 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.