1 Cash-Heavy Stock with Exciting Potential and 2 Facing Challenges

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. Keeping that in mind, here is one company with a net cash position that balances growth with stability and two with hidden risks.

Two Stocks to Sell:

Alamo (ALG)

Net Cash Position: $97.77 million (4.8% of Market Cap)

Expanding its markets through acquisitions since its founding, Alamo (NSYE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.

Why Do We Think Twice About ALG?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 2.6% annually over the last two years
2. Projected sales growth of 3.3% for the next 12 months suggests sluggish demand
3. Earnings per share have dipped by 9.8% annually over the past two years, which is concerning because stock prices follow EPS over the long term

Alamo is trading at $168.16 per share, or 16.9x forward P/E. To fully understand why you should be careful with ALG, check out our full research report (it’s free).

Artisan Partners (APAM)

Net Cash Position: $4.61 million (0.2% of Market Cap)

Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE:APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors.

Why Does APAM Worry Us?

1. Sales trends were unexciting over the last five years as its 5.9% annual growth was below the typical financials company
2. Performance over the past five years shows its incremental sales were less profitable, as its 3.4% annual earnings per share growth trailed its revenue gains

Artisan Partners’s stock price of $38.43 implies a valuation ratio of 9.3x forward P/E. If you’re considering APAM for your portfolio, see our FREE research report to learn more.

One Stock to Watch:

Berkshire Hathaway (BRK.A)

Net Cash Position: $204.3 billion (19% of Market Cap)

Led by legendary investor Warren Buffett since 1965, transforming it from a struggling textile manufacturer into a corporate giant, Berkshire Hathaway (NYSE:BRK.A) is a diversified holding company that owns businesses across insurance, railroads, utilities, manufacturing, retail, and services sectors.

Why Is BRK.A Interesting?

1. Earnings per share grew by 18.9% annually over the last two years and easily exceeded the peer group average
2. Balance sheet strength has increased this cycle as its 15.9% annual tangible book value per share growth over the last five years was exceptional
3. ROE punches in at 13.2%, illustrating management’s expertise in identifying profitable investments

At $747,799 per share, Berkshire Hathaway trades at 23.2x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

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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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.