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 can leverage its balance sheet to grow and two best left off your watchlist.

Two Stocks to Sell:

Workday (WDAY)

Net Cash Position: $4.41 billion (7.1% of Market Cap)

Born from the vision of PeopleSoft founders after Oracle's hostile takeover of their previous company, Workday (NASDAQ: WDAY) provides cloud-based software for financial management, human resources, planning, and analytics to help organizations manage their business operations.

Why Are We Hesitant About WDAY?

1. Revenue increased by 16.4% annually over the last three years, acceptable on an absolute basis but tepid for a software company enjoying secular tailwinds

At $231 per share, Workday trades at 6.2x forward price-to-sales. Dive into our free research report to see why there are better opportunities than WDAY.

Vicor (VICR)

Net Cash Position: $330.8 million (14.2% of Market Cap)

Founded by a researcher at the Massachusetts Institute of Technology, Vicor (NASDAQ: VICR) provides electrical power conversion and delivery products for a range of industries.

Why Does VICR Fall Short?

1. Backlog failed to grow over the past two years, suggesting the company may need to tweak its product roadmap and go-to-market strategy
2. Efficiency has decreased over the last five years as its operating margin fell by 10.9 percentage points
3. Shrinking returns on capital suggest that increasing competition is eating into the company’s profitability

Vicor is trading at $51.80 per share, or 41.5x forward P/E. Check out our free in-depth research report to learn more about why VICR doesn’t pass our bar.

One Stock to Buy:

Zscaler (ZS)

Net Cash Position: $1.78 billion (4.2% of Market Cap)

Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.

Why Is ZS a Top Pick?

1. Customers view its software as mission-critical to their operations as its ARR has averaged 22.6% growth over the last year
2. Market share will likely rise over the next 12 months as its expected revenue growth of 22.6% is robust
3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends

Zscaler’s stock price of $272.80 implies a valuation ratio of 13.1x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 6 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 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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