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.
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. 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:
Lattice Semiconductor (LSCC)
Net Cash Position: $103.3 million (1.2% of Market Cap)
A global leader in its category, Lattice Semiconductor (NASDAQ: LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Why Does LSCC Worry Us?
- Sales tumbled by 18.4% annually over the last two years, showing market trends are working against its favor during this cycle
- Efficiency has decreased over the last five years as its operating margin fell by 18.8 percentage points
- Earnings growth underperformed the sector average over the last five years as its EPS grew by just 5.5% annually
Lattice Semiconductor’s stock price of $65.38 implies a valuation ratio of 48.3x forward P/E. Dive into our free research report to see why there are better opportunities than LSCC.
Independent Bank (INDB)
Net Cash Position: $71.26 million (2.1% of Market Cap)
Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. (NASDAQ: INDB) operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.
Why Is INDB Not Exciting?
- 1.6% annual revenue growth over the last two years was slower than its banking peers
- Earnings per share fell by 6.9% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
- 4.6% annual tangible book value per share growth over the last two years was slower than its banking peers
At $69.80 per share, Independent Bank trades at 1x forward P/B. To fully understand why you should be careful with INDB, check out our full research report (it’s free for active Edge members).
One Stock to Watch:
SentinelOne (S)
Net Cash Position: $793.1 million (13.8% of Market Cap)
Built on the principle of "fighting machine with machine," SentinelOne (NYSE: S) provides an AI-powered cybersecurity platform that autonomously prevents, detects, and responds to threats across endpoints, cloud workloads, and identity systems.
Why Are We Fans of S?
- ARR trends over the last year show it’s maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
- Sales outlook for the upcoming 12 months implies the business will stay on its desirable two-year growth trajectory
- Gross margin of 75% is reasonable for the industry and allows for steady investments in marketing and R&D
SentinelOne is trading at $17.21 per share, or 5.2x forward price-to-sales. Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free for active Edge members.
Stocks We Like Even More
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 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-small-cap company Exlservice (+354% 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
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