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 is one company with a net cash position that balances growth with stability and two best left off your watchlist.
Two Stocks to Sell:
Teradata (TDC)
Net Cash Position: $315 million (11.6% of Market Cap)
Pioneering data warehousing technology in the 1980s before "big data" was a common term, Teradata (NYSE: TDC) provides cloud-based data analytics and AI platforms that help large enterprises integrate, analyze, and leverage their data across multiple environments.
Why Are We Out on TDC?
- Average billings growth of 3.4% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand
- Operating profits fell over the last year as its sales dropped and it struggled to adjust its fixed costs
- Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 25.3 percentage points
At $29.16 per share, Teradata trades at 1.7x forward price-to-sales. Check out our free in-depth research report to learn more about why TDC doesn’t pass our bar.
Lindsay (LNN)
Net Cash Position: $39.86 million (3.5% of Market Cap)
A pioneer in the field of center pivot and lateral move irrigation, Lindsay (NYSE: LNN) provides a variety of proprietary water management and road infrastructure products and services.
Why Do We Avoid LNN?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Earnings per share have contracted by 11.1% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Diminishing returns on capital suggest its earlier profit pools are drying up
Lindsay is trading at $113.43 per share, or 20.8x forward P/E. To fully understand why you should be careful with LNN, check out our full research report (it’s free).
One Stock to Watch:
Amalgamated Financial (AMAL)
Net Cash Position: $88.19 million (6.3% of Market Cap)
Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.
Why Could AMAL Be a Winner?
- Solid 12.9% annual net interest income growth over the last five years indicates its offerings are gaining share
- Share buybacks catapulted its annual earnings per share growth to 17.3%, which outperformed its revenue gains over the last five years
- Annual tangible book value per share growth of 10% over the last five years was superb and indicates its capital strength increased during this cycle
Amalgamated Financial’s stock price of $46.60 implies a valuation ratio of 1.6x forward P/B. Is now a good time to buy? Find out 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 is 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% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. 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 (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
