1 Cash-Heavy Stock Worth Your Attention and 2 to Steer Clear Of
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.
Not all businesses with cash are winners, and that's why we built StockStory - to help you separate the good from the bad. 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.
Net Cash Position: $172.1 million (1.9% of Market Cap)
Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms.
Why Is NYT Not Exciting?
Demand for its offerings was relatively low as its number of subscribers has underwhelmed
Projected sales growth of 5.9% for the next 12 months suggests sluggish demand
Waning returns on capital imply its previous profit engines are losing steam
At $55.41 per share, The New York Times trades at 25.8x forward P/E. Read our free research report to see why you should think twice about including NYT in your portfolio, it's free.
Net Cash Position: $136.4 million (14.8% of Market Cap)
With over 2.5 million implants performed worldwide, STAAR Surgical (NASDAQ:STAA) designs and manufactures implantable lenses that correct vision problems without removing the eye's natural lens.
Why Do We Avoid STAA?
Constant currency revenue growth has disappointed over the past two years and shows demand was soft
Free cash flow margin dropped by 26.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Diminishing returns on capital suggest its earlier profit pools are drying up
STAAR Surgical is trading at $18.68 per share, or 3.2x forward price-to-sales. If you're considering STAA for your portfolio, see our FREE research report to learn more.
Net Cash Position: $4.20 billion (2% of Market Cap)
Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE:NOW) is a software provider helping companies automate workflows across IT, HR, and customer service.
Why Are We Bullish on NOW?
Demand is healthy as its current remaining performance obligations (cRPO) have averaged 22.3% growth over the last year, showing it's securing new contracts for services yet to be fulfilled
Healthy operating margin of 12.9% shows it's a well-run company with efficient processes, and its rise over the last year was fueled by some leverage on its fixed costs
Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
ServiceNow's stock price of $1,004 implies a valuation ratio of 15.5x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it's free.
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. 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-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
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Senate to Vote on Trump's 'Big, Beautiful Bill': Here's What It Contains
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Warren Buffett announces $6 billion in donations to five foundations
NEW YORK -- Famed investor Warren Buffett is donating $6 billion worth of his company's stock to five foundations, bringing the total he has given to them since 2006 to roughly $60 billion, based on their value when received. Buffett said late Friday that the shares of Berkshire Hathaway will be delivered on Monday. Berkshire Hathaway owns Geico, Dairy Queen and a range of other businesses, and Buffett is donating nearly 12.4 million of the Class B shares of its stock. Those shares have a lower and easier-to-digest price tag than the company's original Class A shares, and each of the B shares was worth $485.68 at their most recent close on Friday. The largest tranche is going to the Bill & Melinda Gates Foundation Trust, which will receive 9.4 million shares. The Susan Thompson Buffett Foundation will receive 943,384 shares, and the Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation will each receive 660,366 shares. Buffett made waves a year ago when he said he plans to cut off donations to the Bill & Melinda Gates Foundation after his death and let his three children decide how to distribute the rest of his fortune. Berkshire Hathaway's Class B stock has climbed 19.1% over the last 12 months, topping the broad U.S. stock market's return of 14.1%, including dividends. Buffett is famous on Wall Street for buying companies at good prices and being more conservative when prices look too high. The bargain-hunting approach has helped him amass a fortune worth about $145 billion, with basically all of it in Berkshire Hathaway's stock. 'Nothing extraordinary has occurred at Berkshire; a very long runway, simple and generally sound decisions, the American tailwind and compounding effects produced my current wealth,' Buffett said in a statement. 'My will provides that about 99½% of my estate is destined for philanthropic usage.'
The Hill
2 hours ago
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Warren Buffett announces $6 billion in donations to five foundations
NEW YORK (AP) — Famed investor Warren Buffett is donating $6 billion worth of his company's stock to five foundations, bringing the total he has given to them since 2006 to roughly $60 billion, based on their value when received. Buffett said late Friday that the shares of Berkshire Hathaway will be delivered on Monday. Berkshire Hathaway owns Geico, Dairy Queen and a range of other businesses, and Buffett is donating nearly 12.4 million of the Class B shares of its stock. Those shares have a lower and easier-to-digest price tag than the company's original Class A shares, and each of the B shares was worth $485.68 at their most recent close on Friday. The largest tranche is going to the Bill & Melinda Gates Foundation Trust, which will receive 9.4 million shares. The Susan Thompson Buffett Foundation will receive 943,384 shares, and the Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation will each receive 660,366 shares. Buffett made waves a year ago when he said he plans to cut off donations to the Bill & Melinda Gates Foundation after his death and let his three children decide how to distribute the rest of his fortune. Berkshire Hathaway's Class B stock has climbed 19.1% over the last 12 months, topping the broad U.S. stock market's return of 14.1%, including dividends. Buffett is famous on Wall Street for buying companies at good prices and being more conservative when prices look too high. The bargain-hunting approach has helped him amass a fortune worth about $145 billion, with basically all of it in Berkshire Hathaway's stock. 'Nothing extraordinary has occurred at Berkshire; a very long runway, simple and generally sound decisions, the American tailwind and compounding effects produced my current wealth,' Buffett said in a statement. 'My will provides that about 99½% of my estate is destined for philanthropic usage.'
