2 Cash-Heavy Stocks on Our Buy List and 1 We Turn Down

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. Keeping that in mind, here are two companies with net cash positions that can leverage their balance sheets to grow and one best left off your watchlist.

One Stock to Sell:

Azenta (AZTA)

Net Cash Position: $355.2 million (29.1% of Market Cap)

Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ:AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.

Why Do We Pass on AZTA?

1. Sales tumbled by 2.7% annually over the last two years, showing market trends are working against its favor during this cycle
2. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 18.6% annually, worse than its revenue
3. Cash-burning history and the downward spiral in its margin profile make us wonder if it has a viable business model

At $26.47 per share, Azenta trades at 28.2x forward P/E. If you’re considering AZTA for your portfolio, see our FREE research report to learn more.

Two Stocks to Buy:

American Superconductor (AMSC)

Net Cash Position: $137.3 million (6% of Market Cap)

Founded in 1987, American Superconductor (NASDAQ:AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.

Why Is AMSC a Good Business?

1. Market share has increased this cycle as its 43.7% annual revenue growth over the last two years was exceptional
2. Free cash flow margin is now positive, indicating the company has achieved financial self-sustainability
3. Improving returns on capital suggest its past investments are beginning to deliver value

American Superconductor’s stock price of $51.50 implies a valuation ratio of 44.9x forward P/E. Is now the time to initiate a position? See for yourself in our full research report, it’s free.

SEI Investments (SEIC)

Net Cash Position: $352.8 million (3.4% of Market Cap)

Founded in 1968 as Simulated Environments Inc. to train bank loan officers using computer simulations, SEI Investments (NASDAQ:SEIC) provides technology platforms, investment management, and operational solutions for financial institutions, wealth managers, and investors.

Why Will SEIC Outperform?

1. Products and services resonate with customers, evidenced by its respectable 9.9% annualized sales growth over the last two years
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. Stellar return on equity showcases management’s ability to surface highly profitable business ventures

SEI Investments is trading at $85 per share, or 4x forward P/E. Is now a good time to buy? Find out in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.