1 Cash-Heavy Stock with Impressive Fundamentals and 2 Facing Challenges
Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
Not all businesses with cash are winners, and that’s why we built StockStory - to help you separate the good from the bad. That said, 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:
Sprinklr (CXM)
Net Cash Position: $399 million (31.7% of Market Cap)
With a proprietary AI engine processing 450 million data points daily across 30+ digital channels, Sprinklr (NYSE:CXM) provides cloud-based software that helps large enterprises manage customer experiences across social, messaging, chat, and voice channels.
Why Should You Sell CXM?
- Products, pricing, or go-to-market strategy may need some adjustments as its 5.3% average billings growth over the last year was weak
- Projected sales are flat for the next 12 months, implying demand will slow from its two-year trend
- Operating margin expanded by 4 percentage points over the last year as it scaled and became more efficient
At $5.50 per share, Sprinklr trades at 1.5x forward price-to-sales. Check out our free in-depth research report to learn more about why CXM doesn’t pass our bar.
News Corp (NWSA)
Net Cash Position: $96 million (0.6% of Market Cap)
Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.
Why Is NWSA Risky?
- Sales were flat over the last five years, indicating it’s failed to expand its business
- Poor free cash flow margin of 7.1% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- ROIC hasn’t moved, making investors question whether its recent investments can increase profitability
News Corp is trading at $27.50 per share, or 21.9x forward P/E. Dive into our free research report to see why there are better opportunities than NWSA.
One Stock to Buy:
Palantir Technologies (PLTR)
Net Cash Position: $7.77 billion (2.5% of Market Cap)
Named after the all-seeing stones in "Lord of the Rings," Palantir Technologies (NASDAQ:PLTR) develops software platforms that help government agencies and enterprises integrate, analyze, and operationalize their data for decision-making.
What Makes PLTR Stand Out?
- Average billings growth of 67.6% over the last year enhances its liquidity and shows there is steady demand for its products
- User-friendly software enables clients to ramp up spending quickly, leading to the speedy recovery of customer acquisition costs
- Robust free cash flow margin of 54.1% gives it many options for capital deployment
Palantir Technologies’s stock price of $128.75 implies a valuation ratio of 39.8x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
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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.