2 Cash-Heavy Stocks with Solid Fundamentals and 1 We Ignore

A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.

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 are two companies with net cash positions that can leverage their balance sheets to grow and one with hidden risks.

One Stock to Sell:

Inspire Medical Systems (INSP)

Net Cash Position: $254.3 million (19.3% of Market Cap)

Offering an alternative for the millions who struggle with traditional CPAP machines, Inspire Medical Systems (NYSE:INSP) develops and sells an implantable neurostimulation device that treats obstructive sleep apnea by stimulating nerves to keep airways open during sleep.

Why Is INSP Not Exciting?

1. Subscale operations are evident in its revenue base of $915.2 million, meaning it has fewer distribution channels than its larger rivals
2. Estimated sales decline of 8.2% for the next 12 months implies a challenging demand environment

Inspire Medical Systems’s stock price of $45.85 implies a valuation ratio of 48.5x forward P/E. To fully understand why you should be careful with INSP, check out our full research report (it’s free).

Two Stocks to Watch:

Incyte (INCY)

Net Cash Position: $3.98 billion (20% of Market Cap)

Founded in 1991 and evolving from a genomics research firm to a commercial-stage drug developer, Incyte (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics for cancer and inflammatory diseases.

Why Are We Fans of INCY?

1. Annual revenue growth of 19.3% over the last two years was superb and indicates its market share increased during this cycle
2. Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue
3. Free cash flow margin increased by 8 percentage points over the last five years, giving the company more capital to invest or return to shareholders

At $98.39 per share, Incyte trades at 3.6x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.

Raymond James (RJF)

Net Cash Position: $5.42 billion (17.5% of Market Cap)

Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE:RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.

Why Could RJF Be a Winner?

1. 11.6% annual revenue growth over the last five years surpassed the sector average as its products resonated with customers
2. Share repurchases over the last five years enabled its annual earnings per share growth of 16.2% to outpace its revenue gains
3. Industry-leading 17.8% return on equity demonstrates management’s skill in finding high-return investments

Raymond James is trading at $159.39 per share, or 12.6x forward P/E. Is now the time to initiate a position? See for yourself in our in-depth 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.