1 Cash-Heavy Stock to Target This Week and 2 We Turn Down

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.

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 is one company with a net cash position that can leverage its balance sheet to grow and two best left off your watchlist.

Two Stocks to Sell:

Wix (WIX)

Net Cash Position: $435.7 million (20.4% of Market Cap)

Powering over 263 million registered users worldwide with its AI-driven tools, Wix (NASDAQ:WIX) provides a cloud-based platform that helps individuals and businesses create and manage professional websites without requiring coding skills.

Why Are We Cautious About WIX?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 13.8% average billings growth over the last year was weak
2. Efficiency has decreased over the last year as its operating margin fell by 12.2 percentage points
3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 10.8 percentage points

At $52.33 per share, Wix trades at 1.3x forward price-to-sales. Dive into our free research report to see why there are better opportunities than WIX.

Perma-Fix (PESI)

Net Cash Position: $18.01 million (5.1% of Market Cap)

Tackling hazardous waste challenges since 1990, Perma-Fix (NASDAQ:PESI) provides environmental waste treatment services.

Why Do We Steer Clear of PESI?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.7% annually over the last five years
2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 26.9 percentage points
3. Short cash runway increases the probability of a capital raise that dilutes existing shareholders

Perma-Fix’s stock price of $16.73 implies a valuation ratio of 3.8x forward price-to-sales. To fully understand why you should be careful with PESI, check out our full research report (it’s free).

One Stock to Buy:

NerdWallet (NRDS)

Net Cash Position: $39.4 million (6.6% of Market Cap)

Born from founder Tim Chen's frustration with the lack of transparent credit card information when helping his sister in 2009, NerdWallet (NASDAQ:NRDS) is a digital platform that provides financial guidance to help consumers and small businesses make smarter decisions about credit cards, loans, insurance, and other financial products.

Why Should You Buy NRDS?

1. Market share has increased this cycle as its 28.2% annual revenue growth over the last five years was exceptional
2. Performance over the past two years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue

NerdWallet is trading at $9.35 per share, or 1.6x forward P/B. Is now the right time to buy? See for yourself in our in-depth research report, it’s free.

High-Quality Stocks for All Market Conditions

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 meet near-term momentum — both boxes checked at the same time.

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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.