StockStory Flags 3 Cash-Rich Stocks to Avoid, Led by Trustmark’s $2.95 Billion Net Cash
Updated
Updated · Yahoo Finance · Aug 16
StockStory Flags 3 Cash-Rich Stocks to Avoid, Led by Trustmark’s $2.95 Billion Net Cash
1 articles · Updated · Yahoo Finance · Aug 16
Summary
StockStory named Marqeta, Coupang and Trustmark as cash-heavy stocks to avoid, arguing that strong net cash can mask weak growth, thin profitability or limited expansion prospects.
Trustmark carried the biggest cash cushion at $2.95 billion—105% of market cap—but analysts said its 8.6% five-year net interest income growth and projected 4.1% growth over the next year look unexciting.
Marqeta held $696.8 million in net cash, yet StockStory pointed to only 11% annual revenue growth over five years and an expected 8.9-point drop in free-cash-flow margin as it spends more to defend its position.
Coupang’s $477 million net cash position also failed to reassure analysts, who cited 7.2% active-customer growth, a 28.9% gross margin and a 41.4% annual decline in earnings per share over three years.
The report’s broader message is that balance-sheet strength alone is not enough; StockStory said investors should favor companies that can both withstand pressure and outperform.