In this article, we will take a look at the 12 Cash-Rich Stocks to Buy Right Now.
The rally in the US equity market this year has been driven by strong earnings rather than expanding valuations or speculative enthusiasm. The Financial Times reported that corporate earnings have been exceptionally strong. In the first quarter of this year, S&P 500 companies posted earnings per share growth of 18% year over year, excluding certain one-time benefits. Excluding the megacap technology stocks, the median S&P 500 company recorded 14% growth. That made it the strongest quarter in more than a decade outside of the 2018 tax-cut period and the 2021 Covid reopening phase.
Strong results have not been limited to past performance. Forward earnings estimates have also moved higher. Since the start of the year, Wall Street analysts have raised earnings forecasts for the S&P 500 in both 2026 and 2027. Upgrades have outnumbered downgrades across every sector.
At the same time, The Wall Street Journal reported that technology companies are seeking large amounts of capital to fund data center investments, and investors have been willing to provide it through multiple channels and across global markets. This wave of fundraising has largely supported markets by helping finance technological advances, even as it tests the market’s capacity to absorb such large capital needs.
The report also noted that spending on data centers and other AI infrastructure by four major technology companies is expected to exceed $670 billion this year. As a share of the economy, that investment is larger than the railroad expansion of the 1850s.
Taken together, these trends suggest that US companies remain in a strong cash position this year and are well-positioned financially for the years ahead.
Given this, we will take a look at some of the best cash-rich stocks to invest in.
Photo by Vitaly Taranov on Unsplash
Our Methodology:
For this article, we screened for companies with market caps above $10 billion and, from there, identified companies with a price-to-free-cash-flow ratio below 15. 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 limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
12. Avery Dennison Corporation (NYSE:AVY)
Operating Cash Flow (TTM): $1.03 Billion
On June 4, Argus lowered its price recommendation on Avery Dennison Corporation (NYSE:AVY) to $175 from $190. It reiterated a Buy rating on the stock. The firm said the company’s new RFID technology partnership with Walmart (WMT), along with its strategic acquisitions, could create meaningful upside over time. While tariffs remain a near-term risk to earnings growth in the coming quarters, the analyst believes management is well-positioned to manage those challenges.
During Avery Dennison’s Q1 2026 earnings call, CEO Deon Stander described the quarter as resilient despite mixed results across the company’s segments. He said the business delivered a solid start to 2026, with organic sales increasing 1%, driven by mid-single-digit growth in volume and mix. Adjusted EPS rose 7% year over year.
Stander also said geopolitical uncertainty had caused a significant shift in raw material inflation trends. According to him, the company is responding through targeted price increases and material reengineering efforts where necessary to help offset rising costs.
On the technology front, Stander highlighted the company’s continued investment in intelligent labels. He said Avery Dennison recently agreed to invest an additional $75 million in Wiliot and plans to create a dedicated joint go-to-market team focused on accelerating adoption across the retail, food, and logistics industries. He added that the initiative would further strengthen Avery Dennison’s role as Wiliot’s preferred commercial partner for inlays.
Avery Dennison Corporation (NYSE:AVY) is a global materials science and digital identification solutions company. It offers branding and information solutions designed to improve labor and supply chain efficiency, reduce waste, support sustainability and circularity efforts, increase transparency, and strengthen connections between brands and consumers.
11. Baxter International Inc. (NYSE:BAX)
Operating Cash Flow (TTM): $1.25 Billion
On May 28, Citi analyst Joanne Wuensch downgraded Baxter International Inc. (NYSE:BAX) to Sell from Neutral. She lowered the price target on the stock to $17 from $19. In a research note, the analyst said the company faces a year that is weighted toward the second half and is still searching for a CFO. Citi also noted that valuations across the broader medical technology sector are “dipping into value territory,” which it believes offers investors more attractive opportunities than Baxter.
On May 4, Barclays raised its price recommendation on Baxter to $27 from $25. It reiterated an Overweight rating on the shares. The analyst said the company exceeded expectations at a time when many investors had anticipated a guidance cut. In a research note, Barclays described the results as a “respectable beat and reiterated outlook.”
Baxter International Inc. (NYSE:BAX) is a global medical technology company. Its operations are organized into three segments: Medical Products and Therapies, Healthcare Systems and Technologies, and Pharmaceuticals.
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