2 Cash-Heavy Stocks with Competitive Advantages 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.

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. That said, here are two companies with net cash positions that can leverage their balance sheets to grow and one that may struggle.

One Stock to Sell:

Old Dominion Freight Line (ODFL)

Net Cash Position: $80.1 million (0.2% of Market Cap)

With its name deriving from the Commonwealth of Virginia’s nickname, Old Dominion (NASDAQ:ODFL) delivers less-than-truckload (LTL) and full-container load freight.

Why Do We Think Twice About ODFL?

1. Declining unit sales over the past two years indicate demand is soft and that the company may need to revise its strategy
2. Earnings per share have contracted by 7.2% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Old Dominion Freight Line is trading at $193.39 per share, or 38.9x forward P/E. To fully understand why you should be careful with ODFL, check out our full research report (it’s free).

Two Stocks to Watch:

Coinbase (COIN)

Net Cash Position: $9.01 billion (20.6% of Market Cap)

Widely regarded as the face of crypto, Coinbase (NASDAQ:COIN) is a blockchain infrastructure company updating the financial system with its trading, staking, stablecoin, and other payment solutions.

Why Should You Buy COIN?

1. Impressive 52% annual revenue growth over the last two years indicates it’s winning market share
2. Earnings growth has trumped its peers over the last two years as its EPS has compounded at 303% annually
3. COIN is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its improved cash conversion implies it’s becoming a less capital-intensive business

At $165.42 per share, Coinbase trades at 14.5x forward EV/EBITDA. Is now a good time to buy? Find out in our full research report, it’s free.

Molina Healthcare (MOH)

Net Cash Position: $482 million (6.9% of Market Cap)

Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.

Why Are We Positive On MOH?

1. Annual revenue growth of 18.7% over the past five years was outstanding, reflecting market share gains this cycle
2. Large revenue base of $45.43 billion gives it power over healthcare providers and plan holders

Molina Healthcare’s stock price of $135.60 implies a valuation ratio of 18.4x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

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 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.