2 Cash-Heavy Stocks on Our Watchlist and 1 We Question

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.

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 with hidden risks.

One Stock to Sell:

Chewy (CHWY)

Net Cash Position: $142.6 million (1.4% of Market Cap)

Founded by Ryan Cohen, who later became known for his involvement in GameStop, Chewy (NYSE:CHWY) is an online retailer specializing in pet food, supplies, and healthcare services.

Why Are We Cautious About CHWY?

1. Annual sales growth of 8.5% over the last three years lagged behind its consumer internet peers as its large revenue base made it difficult to generate incremental demand
2. Estimated sales growth of 6.1% for the next 12 months implies demand will slow from its three-year trend
3. Gross margin of 29.4% reflects its high servicing costs

Chewy is trading at $25.41 per share, or 13x forward EV/EBITDA. Dive into our free research report to see why there are better opportunities than CHWY.

Two Stocks to Watch:

Zeta Global (ZETA)

Net Cash Position: $122.7 million (2.7% of Market Cap)

Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE:ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.

Why Should You Buy ZETA?

1. Billings have averaged 31.5% growth over the last year, showing it’s securing new contracts that could potentially increase in value over time
2. Notable projected revenue growth of 34.7% for the next 12 months hints at market share gains
3. Software platform has product-market fit given the rapid recovery of its customer acquisition costs

Zeta Global’s stock price of $18.70 implies a valuation ratio of 2.5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Costco (COST)

Net Cash Position: $10.08 billion (2.3% of Market Cap)

Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ:COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.

Why Does COST Catch Our Eye?

1. Comparable store sales rose by 6.2% on average over the past two years, demonstrating its ability to drive increased spending at existing locations
2. Massive revenue base of $286.3 billion makes up for its weaker gross margin and makes it a household name that influences purchasing decisions
3. Stellar returns on capital showcase management’s ability to surface highly profitable business ventures, and its returns are growing as it capitalizes on even better market opportunities

At $995.93 per share, Costco trades at 46.2x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.