3 Cash-Heavy Stocks in the Doghouse

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.

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 three companies with net cash positions that don’t make the cut and some better choices instead.

fuboTV (FUBO)

Net Cash Position: $88.73 million (7.4% of Market Cap)

Originally launched as a soccer streaming platform, fuboTV (NYSE:FUBO) is a video streaming service specializing in live sports, news, and entertainment content.

Why Do We Think Twice About FUBO?

1. Performance surrounding its domestic subscribers has lagged its peers

2. Historical operating margin losses point to an inefficient cost structure

3. Capital intensity will likely ramp up in the next year as its free cash flow margin is expected to contract by 10.7 percentage points

At $3.53 per share, fuboTV trades at 139.5x forward EV-to-EBITDA. If you’re considering FUBO for your portfolio, see our FREE research report to learn more.

Graco (GGG)

Net Cash Position: $493.7 million (3.4% of Market Cap)

Founded in 1926, Graco (NYSE:GGG) is an industrial company specializing in the development and manufacturing of fluid-handling systems and products.

Why Are We Wary of GGG?

1. Sales stagnated over the last two years and signal the need for new growth strategies

2. Flat earnings per share over the last two years lagged its peers

3. Waning returns on capital imply its previous profit engines are losing steam

Graco is trading at $86.15 per share, or 28.5x forward P/E. Read our free research report to see why you should think twice about including GGG in your portfolio, it’s free.

Sanmina (SANM)

Net Cash Position: $316.6 million (6% of Market Cap)

Founded in 1980, Sanmina (NASDAQ:SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries.

Why Is SANM Risky?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 6.2% annually over the last two years

2. Competitive supply chain dynamics and steep production costs are reflected in its low gross margin of 8.2%

3. Earnings per share have dipped by 4.2% annually over the past two years, which is concerning because stock prices follow EPS over the long term

Sanmina’s stock price of $98.53 implies a valuation ratio of 14.6x forward P/E. Dive into our free research report to see why there are better opportunities than SANM.

Stocks We Like More

Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.

While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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 for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today