In this article, we will take a look at some of the best cash-rich stocks to invest in.
US corporations may be leaving millions on the table based on how they manage their cash, according to research published by Clearwater Analytics in November. Beyond holding hard currency, companies typically invest excess cash in money market funds and short-term Treasury bills. The duration of those investments tends to vary based on operating needs and return goals.
Clearwater’s findings point to a clear difference in outcomes. Companies using a more dynamic cash allocation approach have earned an average annual return of 5.5% since 2023. Those that avoided frequent adjustments or active management earned about 3.5%. Over time, that gap becomes meaningful.
Data released by Clearwater in August showed that cash allocations at US corporations have fallen by half since 2021. Higher interest rates pushed firms toward higher-yielding Treasury bills, driving cash balances to the lowest level recorded in Clearwater’s system in at least eight years. When very short-term Treasury bills are excluded, the shift is even more pronounced. Median allocations to US Treasuries jumped from 3% to 20% over the same period. Many companies appear to be prioritizing yield over idle cash.
In September, Morgan Stanley advised clients to focus on companies with strong cash reserves, noting that these firms are better positioned to weather an economic downturn. Analysts pointed to free cash flow as a key advantage. Companies that generate cash after covering operating costs and capital spending can fund growth internally, reduce debt, or support other initiatives without relying heavily on outside financing. That preference reflects rising concern about signs of strain across the US economy.
Given this, we will take a look at some of the best cash-rich stocks to invest in.
Our Methodology:
For this article, we began by using a stock screener to find companies with a price-to-free-cash-flow ratio below 15. From this list, we selected companies with a market capitalization of at least $10 billion. Next, we focused on companies with the highest trailing twelve-month operating cash flows, ranking the stocks in ascending order based on their TTM operating cash flows. We also considered hedge fund sentiment around each stock using Insider Monkey’s data for Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Toll Brothers, Inc. (NYSE:TOL)
Operating Cash Flow (TTM): $1.1 Billion
Number of Hedge Fund Holders: 51
Toll Brothers, Inc. (NYSE:TOL) is among the best cash-rich stocks to invest in.
On December 12, JPMorgan lowered its price target on Toll Brothers, Inc. (NYSE:TOL) to $141 from $161 and kept an Overweight rating after the earnings report. In a research note, the analyst pointed to fiscal 2026 closings and gross margin guidance that came in below estimates. The firm trimmed its forecasts but maintained a relative buy view on the stock.
For fiscal Q4 2025, Toll Brothers exceeded expectations on quarterly orders. At the same time, full-year guidance for 2026 landed below what the market was looking for. The company reported 2,598 signed contracts for the three months through October, according to a statement released after Monday’s close. Analysts surveyed by Bloomberg had expected 2,475.
Toll Brothers, Inc. (NYSE:TOL) also said it expects to deliver between 10,300 and 10,700 homes in fiscal 2026. Bloomberg’s consensus estimate stood at 10,843.
CEO Doug Yearley said the results show the company’s luxury business remains differentiated, as it serves a more affluent buyer who feels less pressure from affordability challenges. More customers chose to trade up to a new home, even when that meant selling an existing property and giving up a lower mortgage rate. The decline in rates during the quarter, from nearly 7% to below 6.3%, helped support demand. Builders, including Toll, have leaned more on incentives such as mortgage rate buydowns to bring buyers off the sidelines.
Toll Brothers, Inc. (NYSE:TOL) builds, markets, and finances residential and commercial properties across the United States.
9. DocuSign, Inc. (NASDAQ:DOCU)
Operating Cash Flow (TTM): $1.1 Billion
Number of Hedge Fund Holders: 60
DocuSign, Inc. (NASDAQ:DOCU) is among the best cash-rich stocks to invest in.
On December 17, BTIG analyst Allan Verkhovski initiated coverage of DocuSign, Inc. (NASDAQ:DOCU) with a Buy rating and an $88 price target. Shares are down 34% from their multi-year high of $107 last December, following what the analyst described as a very “noisy” year. In a research note, he said factors such as the rollout of the DocuGPT agent and the company’s shift to guiding on annual ARR instead of billings, starting next quarter, weighed on the stock. BTIG sees that backdrop as a “great” buying opportunity.
In the third quarter of 2025, the company posted one of its strongest growth quarters over the past two years. Results were driven by steady customer spending on core products and the Intelligent Agreement Management platform, known as IAM. Revenue reached $818 million, up 8% year over year, and billings totaled $829 million, while non-GAAP operating margin came in at 31%. Free cash flow rose to $263 million, which supported a $215 million share repurchase. That marked DocuSign, Inc. (NASDAQ:DOCU)’s largest quarterly buyback to date.
Allan Thygesen, President, CEO & Director, pointed to consistent execution across three strategic priorities. These include meeting demand for IAM and eSignature through an improved go-to-market approach, accelerating platform development and AI innovation, and pushing for higher operational efficiency.
By the end of Q3, more than 25,000 customers had adopted IAM, up from over 10,000 in April. Management expects IAM to account for a low double-digit share of recurring revenue by year-end. IAM is now integrated with platforms such as ChatGPT, Anthropic Claude, Gemini Enterprise, and others. During the quarter, IAM also achieved FedRAMP Moderate and GovRAMP authorization.
DocuSign, Inc. (NASDAQ:DOCU) is a cloud-based platform that allows users to send, sign, and manage legally binding electronic agreements and documents from any device, reducing the need for paper, printing, and scanning.
8. General Mills, Inc. (NYSE:GIS)
Operating Cash Flow (TTM): $2.36 Billion
Number of Hedge Fund Holders: 48
General Mills, Inc. (NYSE:GIS) is one of the best cash-rich stocks to invest in.
On December 22, Morgan Stanley analyst Megan Alexander Clapp lowered the firm’s price target on General Mills, Inc. (NYSE:GIS) to $47 from $48 and kept an Underweight rating. The update followed the company’s Q2 results and a follow-up discussion with management. The firm cut its FY27 EPS estimate to $3.65 from $3.80, and the revised outlook fed directly into the lower price target.
A few days earlier, on December 17, General Mills, Inc. (NYSE:GIS) reported second-quarter sales and profit that came in ahead of expectations. Demand held up as budget-conscious consumers continued to eat at home rather than dine out, lifting sales of pantry staples and breakfast cereals, including products under the Pillsbury brand.
US consumer sentiment showed signs of improvement in early December, but many shoppers still leaned toward home-cooked meals. High prices and uncertainty around the labor market continued to shape spending habits. CEO Jeff Harmening described the quarter as a “volatile operating environment,” while also pointing to “improved momentum” in the first half of the year.
Net sales for the quarter ended November 23 fell 7% to $4.86 billion, topping analysts’ estimates of $4.78 billion, according to LSEG data. Adjusted earnings came in at $1.10 per share, above expectations of $1.03. The company reaffirmed its full-year outlook, calling for a 10% to 15% decline in profit and organic net sales ranging from a 1% increase to a 1% decrease.
In June, General Mills, Inc. (NYSE:GIS) said it plans to remove synthetic dyes from its entire US retail portfolio by the end of fiscal 2027. The move reflects shifting consumer preferences toward healthier options and aligns with the Trump administration’s “Make America Healthy Again” push.
General Mills, Inc. (NYSE:GIS) manufactures and markets a broad range of branded consumer food products sold through retail channels across the US and internationally.
7. American Airlines Group Inc. (NASDAQ:AAL)
Operating Cash Flow (TTM): $3.77 Billion
Number of Hedge Fund Holders: 43
American Airlines Group Inc. (NASDAQ:AAL) is among the best cash-rich stocks to invest in.
On December 12, UBS analyst Atul Maheswari upgraded American Airlines Group Inc. (NASDAQ:AAL) to Buy from Neutral and raised the price target to $20 from $14 after assuming coverage. In a research note, the analyst said the market is not fully valuing the airline’s ability to “meaningfully expand” profits in the coming years as corporate travel demand recovers. UBS also expects growth in loyalty income and believes the company is positioned to benefit from structural tailwinds supporting large network carriers.
Earlier in November, the airline said it would cut hundreds of corporate jobs following a third-quarter loss, according to a person familiar with the matter. The reductions affect mid-level management and support staff, the person said, requesting anonymity because the details are private. Most of the cuts are tied to roles based at the company’s headquarters in Fort Worth, Texas.
The decision followed an adjusted loss of 17 cents per share in the third quarter. While the result was better than Wall Street expected, it was compared with a profit of 30 cents per share a year earlier. American employed 102,674 people in 2024, according to data from aviation analytics firm Cirium. That compares with 100,924 employees at Delta Air Lines and 96,422 at United Airlines Holdings.
American Airlines Group Inc. (NASDAQ:AAL) operates one of the largest airline networks in the world, with its core business focused on passenger air transportation.
6. The PNC Financial Services Group, Inc. (NYSE:PNC)
Operating Cash Flow (TTM): $5.43 Billion
Number of Hedge Fund Holders: 59
The PNC Financial Services Group, Inc. (NYSE:PNC) is among the best cash-rich stocks to invest in.
On December 17, Keefe Bruyette raised its price target on The PNC Financial Services Group, Inc. (NYSE:PNC) to $228 from $215 and kept a Market Perform rating on the stock. The firm updated its estimates after recent conference discussions and meetings with management.
A few days earlier, on December 12, the company said it had received all required regulatory approvals to complete its previously announced acquisition of FirstBank Holding Company, including its banking subsidiary, FirstBank. Approvals came from the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Colorado Division of Banking. PNC expects the transaction to close on or around Jan. 5, 2026, assuming standard closing conditions are met.
Once the deal closes, The PNC Financial Services Group, Inc. (NYSE:PNC) plans to begin integrating FirstBank into its national platform, which includes rolling out PNC’s treasury management, payments, and digital banking capabilities. Full customer conversion is expected by mid-2026.
In November, the bank also said it plans to open more than 300 new branches by 2030. That adds roughly 100 locations to its earlier plan as PNC pushes to expand its physical presence. Even as digital banking and online payments reduce the need for frequent branch visits, many US lenders continue to invest in brick-and-mortar locations to build deposits and deepen customer relationships.
The PNC Financial Services Group, Inc. (NYSE:PNC) is a diversified financial services company in the US. Its operations span retail and business banking, a broad range of lending products, and specialized services for corporate and government clients. The company also has businesses in corporate banking, real estate finance, asset-based lending, wealth management, and asset management.
5. Target Corporation (NYSE:TGT)
Operating Cash Flow (TTM): $6.77 Billion
Number of Hedge Fund Holders: 52
Target Corporation (NYSE:TGT) is one of the best cash-rich stocks to invest in.
On December 23, Wolfe Research analyst Spencer Hanus told investors that the firm’s checks show Walmart continues to outperform Target Corporation (NYSE:TGT) across most trade areas. Target has delivered solid seasonal merchandise execution in a few markets, including Northern New Jersey, but performance has been uneven. Results appear weaker in areas closer to Philadelphia. A recent outage affecting Target’s website and mobile app, along with regional distribution disruptions, led Wolfe to cut its Q4 same-store sales estimate by 25 basis points. The firm noted that it did not observe any immediate out-of-stock issues tied to those disruptions. Wolfe continues to rate the shares Underperform with an $81 price target.
On December 26, the Financial Times reported that activist investor Toms Capital Investment Management made a significant investment in Target Corporation (NYSE:TGT). The move adds pressure on a retailer that has lagged its peers for several years. The size of the stake was not disclosed, and the report did not specify any particular demands from the New York–based firm.
Target shares are down more than 27% since the start of 2025. In August, the company appointed long-time executive Michael Fiddelke to help revive growth as household budgets remain strained and tariff uncertainty weighs on demand. To address investor concerns and reenergize the business, the company announced plans to spend an additional $1 billion in 2026 on new store openings and remodels. The company operates nearly 2,000 stores and has also cut 1,800 corporate roles as part of a broader restructuring.
The investment by TCIM is not Target’s first experience with activist pressure. In 2009, the company fought a high-profile proxy battle with Pershing Square’s Bill Ackman, who pushed for board seats and a real estate spin-off during a period of declining profits.
Target Corporation (NYSE:TGT) is a major US retailer, offering a wide range of affordable, trend-focused merchandise and groceries. Its assortment spans clothing, electronics, home goods, and food, sold through large-format stores and digital channels.
4. Lowe’s Companies, Inc. (NYSE:LOW)
Operating Cash Flow (TTM): $9.21 Billion
Number of Hedge Fund Holders: 68
Lowe’s Companies, Inc. (NYSE:LOW) is one of the best cash-rich stocks to invest in.
On December 17, Truist analyst Scot Ciccarelli raised the firm’s price target on Lowe’s Companies, Inc. (NYSE:LOW) to $269 from $256 and kept a Buy rating on the shares. The move came as part of a broader research note previewing 2026 for Hardlines and Broadlines consumer names. Ciccarelli said that slower consumer trends in the second half of FY25 point to shoppers remaining selective, with a continued focus on “Value.”
For Lowe’s, Truist highlighted the large amount of home equity still sitting on the sidelines. With more than $35T in equity and recent rate cuts, homeowners have meaningful “dry powder” to reinvest in what is often their largest asset. As long as existing home supply stays tight and prices remain flat to rising, the firm said it remains constructive on the home improvement space.
Lowe’s Companies, Inc. (NYSE:LOW) has been pushing hard to attract professional builders and contractors. These customers tend to spend more than typical shoppers and return often, since home construction and renovation are part of their daily work. That strategy showed up in recent deal activity. In June, the company acquired Artisan Design Group. In October, it closed on the purchase of Foundation Building Materials. Both moves were aimed at strengthening its appeal with professional customers.
In its third-quarter earnings release, the company said expanding its professional offering is central to driving more consistent sales and profit growth. Professional sales have been improving, but the broader business has been slow to move. Comparable sales rose just 0.4% year over year in Q3, while total sales increased 3%. Net income declined 5%. Interest costs are also becoming more noticeable. Lowe’s Companies, Inc. (NYSE:LOW) now expects to pay $1.4 billion in interest expense for the year, up from a prior forecast of $1.3 billion. In Q3, the company reported $2.48 billion in operating income, with $352 million going to interest. Roughly 14% of net operating income is being used to service debt, and that share could climb if additional borrowing is required.
Lowe’s Companies, Inc. (NYSE:LOW) is one of the largest home improvement retailers in the US, selling products tied to building, maintenance, repair, remodeling, and decorating. The company also offers installation and related services, positioning itself as a one-stop shop for both homeowners and professionals.
3. Chubb Limited (NYSE:CB)
Operating Cash Flow (TTM): $13.32 Billion
Number of Hedge Fund Holders: 64
Chubb Limited (NYSE:CB) is among the best cash-rich stocks to invest in.
On December 16, Morgan Stanley analyst Bob Huang raised the firm’s price target on Chubb Limited (NYSE:CB) to $310 from $300 and kept an Equal Weight rating on the shares. He said the P&C insurance sector is dealing with familiar pressures, including softer pricing in property and heavier competition in personal auto. Still, attractive valuations and strong casualty pricing help offset those challenges, and Huang continues to view the industry as Attractive heading into 2026.
Chubb’s strength lies in its steady cash generation and global footprint. Over the past 12 months, the company has produced nearly $14.7 billion in free cash flow. That cash remains after expenses and supports share buybacks and dividend payments, while also funding future growth initiatives. This level of cash flow helps explain why Chubb Limited (NYSE:CB) has raised its dividend for 32 consecutive years.
Insurers also benefit from their investment portfolios as large allocations to high-quality bonds, including US Treasuries, generate reliable interest income alongside insurance premiums. When interest rates stay elevated, that income increases and adds a defensive layer to earnings. Through September 30, Chubb generated $4.8 billion in net investment income.
Chubb Limited (NYSE:CB) is a global insurance leader, helping individuals, families, and businesses assess risk, manage exposure, and protect against loss across markets worldwide.
2. The Goldman Sachs Group, Inc. (NYSE:GS)
Operating Cash Flow (TTM): $17.89 Billion
Number of Hedge Fund Holders: 75
The Goldman Sachs Group, Inc. (NYSE:GS) is one of the best cash-rich stocks to invest in.
On December 17, Keefe Bruyette raised its price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $971 from $870 and kept a Market Perform rating on the shares. The firm updated its estimates after recent conference discussions and meetings with management.
Separately, The Wall Street Journal reported on ongoing challenges at Goldman Sachs BDC, The Goldman Sachs Group, Inc. (NYSE:GS)’s business-development company that focuses on lending to middle-market firms. The value of its holdings on a per-share basis has declined for seven consecutive quarters as loan performance weakened. The stock price has fallen even more sharply. One analyst ranked Goldman BDC’s credit performance 25th out of 26 publicly traded BDCs, an unfamiliar position for a firm of Goldman’s stature.
Management changes are already in place. The company has restructured some loans by pushing out maturity dates and allowing delays in interest payments. Goldman says newer loans are performing better, and some operating metrics have improved over the past year. Analysts note that legacy loans still make up a meaningful share of the portfolio and continue to weigh on results.
Like other BDCs, Goldman Sachs BDC raises capital by issuing shares or taking on debt, then lends that capital through customized private-credit transactions. The income generated is returned to investors through dividends, which has made BDCs popular with individual investors. Goldman BDC’s assets total about $3.4 billion, a small slice of the roughly $162 billion Goldman manages across its private-credit platform.
The Goldman Sachs Group, Inc. (NYSE:GS) operates as a global investment banking and financial services firm, with businesses spanning securities, asset management, and wealth management for clients around the world.
1. Bank of America Corporation (NYSE:BAC)
Operating Cash Flow (TTM): $61.4 Billion
Number of Hedge Fund Holders: 111
Bank of America Corporation (NYSE:BAC) is among the best cash-rich stocks to invest in.
On December 17, Keefe Bruyette analyst Christopher McGratty raised the firm’s price target on Bank of America Corporation (NYSE:BAC) to $64 from $58 and kept an Outperform rating on the shares. The update followed recent conferences and meetings with management, which led the firm to refresh its estimates.
Earlier this month, Bank of America said it will begin allowing its wealth advisers to recommend crypto allocations in client portfolios starting next month. The change marks a notable shift for the digital assets space. Beginning January 5, advisers at Bank of America Private Bank, Merrill, and Merrill Edge will be able to suggest several crypto exchange-traded products to clients, with no asset minimum required.
Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank, made the following remark:
“For investors with a strong interest in thematic innovation and comfort with elevated volatility, a modest allocation of 1% to 4% in digital assets could be appropriate.”
Bank of America Corporation (NYSE:BAC) said clients who met certain asset thresholds have had access to bitcoin ETFs since early 2024. This latest step expands the adviser’s role. Advisors will no longer just execute crypto-related requests but can actively guide clients on these products.
Bank of America Corporation (NYSE:BAC) is one of the largest financial institutions in the US, providing banking, investing, and wealth management services to individuals, businesses, and government clients worldwide.
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