12 Cash-Rich Stocks to Buy Right Now

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.

10. The J. M. Smucker Company (NYSE:SJM)

Operating Cash Flow (TTM): $1.29 Billion

On June 5, Morgan Stanley raised its price recommendation on The J. M. Smucker Company (NYSE:SJM) to $106 from $104. It reiterated an Equal Weight rating on the shares. The analyst said investor attention is now focused on fiscal 2027 outlooks as several packaged food companies prepare to report off-cycle earnings in the coming weeks. Morgan Stanley also noted that it is lowering estimates “again,” mainly to account for additional cost inflation.

During the company’s fiscal Q4 2026 earnings call, CEO Mark Smucker highlighted a key milestone for the Uncrustables brand, which reached $1 billion in sales. He said the brand is expected to continue growing, though future growth is not likely to remain at double-digit rates.

Smucker also discussed a packaging transition underway for the product line. He explained that all Uncrustables products will become fridge-friendly and that the company is in the process of converting every sandwich to that format.

CFO Tucker Marshall addressed the company’s fiscal 2027 cost outlook and its approach to managing inflation. He said that, excluding the effects of green coffee costs and tariffs, the company expects low-single-digit inflation across the rest of its portfolio.

According to Marshall, the expected cost increases will be driven primarily by packaging, ingredient, and transportation expenses.

The J. M. Smucker Company (NYSE:SJM) manufactures and markets branded food and beverage products worldwide.

9. General Mills, Inc. (NYSE:GIS)

Operating Cash Flow (TTM): $2.23 Billion

On June 5, Morgan Stanley lowered its price recommendation on General Mills, Inc. (NYSE:GIS) to $32 from $37. It reiterated an Underweight rating on the shares. The analyst said attention is shifting toward fiscal 2027 outlooks as several packaged food companies prepare to report off-cycle earnings in the coming weeks. Morgan Stanley also noted that it is lowering estimates “again,” primarily to reflect additional cost inflation.

On June 3, JPMorgan reduced its price goal on General Mills to $31 from $36. It kept an Underweight rating on the stock as part of its fiscal Q4 earnings preview. The firm said inflation and continued volume pressure could weigh on the company’s fiscal 2027 outlook.

General Mills, Inc. (NYSE:GIS) is a global manufacturer and marketer of branded consumer food products. The company operates through four segments: North America Retail, International, North America Pet, and North America Foodservice.

8. MGM Resorts International (NYSE:MGM)

Operating Cash Flow (TTM): $2.55 Billion

On June 3, CBRE downgraded MGM Resorts International (NYSE:MGM) to Hold from Buy. It also set a $50 price target on the stock.

On June 1, CNBC reported that Barry Diller’s People Inc. had offered to acquire MGM Resorts for $48.30 per share in cash. MGM operates several of Las Vegas’ best-known properties, including Bellagio and Aria. Diller, who currently serves on MGM Resorts’ board, said he would recuse himself from any board discussions or actions related to the proposed transaction. He made the statement in a letter sent to the company’s board of directors.

People Inc., previously known as IAC, owns approximately 26.1% of MGM Resorts. In a news release, Diller made the following remark:

“We began investing in MGM nearly six years ago because we believed it represented a rare kind of business: one with real world assets that AI cannot easily replicate or disintermediate and exceptional digital growth opportunities.”

MGM Resorts International (NYSE:MGM) is a global gaming and entertainment company with properties across the US and international markets. Its destinations include hotels and casinos, meeting and convention spaces, live entertainment venues, and a wide range of dining, nightlife, and retail options.

7. The Cigna Group (NYSE:CI)

Operating Cash Flow (TTM): $8.81 Billion

On June 8, Mizuho raised the firm’s price recommendation on The Cigna Group (NYSE:CI) to $340 from $330. It reiterated an Outperform rating on the shares. Analyst Ann Hynes said Mizuho believes the managed care sector is moving into a “more stable and predictable” policy environment. According to the firm, policy-related surprises are likely to become less frequent and less severe than they have been over the past three years. That shift could allow investors to focus more on company fundamentals, pricing recovery, and the sector’s underlying earnings potential. Mizuho also increased price targets across the managed care sector to reflect what it sees as a more stable regulatory and legislative backdrop.

On May 22, UBS raised its price goal on Cigna to $400 from $375. It maintained a Buy rating on the stock. In a research note, the analyst said managed care companies generally raised their guidance after stronger-than-expected first-quarter results. Performance benefited from favorable respiratory trends and seasonal cost patterns. The firm also pointed to improved Medicare Advantage rates, more stable ACA exchange enrollment, and modest outperformance in Medicaid as factors that have increased confidence in margin recovery. At the same time, UBS noted that companies continue to face cost pressures from specialty drugs, GLP-1 treatments, and behavioral health services.

The Cigna Group (NYSE:CI) is a global health company that operates through two business segments: Evernorth Health Services and Cigna Healthcare.

6. Prudential Financial, Inc. (NYSE:PRU)

Operating Cash Flow (TTM): $9.78 Billion

On June 9, Argus downgraded Prudential Financial, Inc. (NYSE:PRU) to Hold from Buy. It pointed to the company’s ongoing challenges in Japan. The analyst noted that Prudential announced in April that it would extend the suspension of new sales in Japan by an additional 180 days, following an earlier 90-day suspension announced in February. Argus said Prudential continues to generate an above-average return on equity over the long term and offers a dividend yield of about 5.4%. The firm added that it could move the stock back to its Buy list once there is greater clarity around the current situation.

During Prudential Financial’s Q1 2026 earnings call, Chairman, CEO, and President Andrew Sullivan highlighted continued momentum across the company’s core businesses. He said retail annuity sales exceeded $3 billion during the quarter, while Prudential completed $1.4 billion in pension risk transfer (PRT) transactions across several middle-market cases.

Sullivan also pointed to growth at PGIM. He said the firm’s focus on direct lending and asset-backed finance continued to deliver strong results. Those areas accounted for about $5 billion of the $13 billion invested in private assets during the quarter.

Executive Vice President and CFO Yanela del Frias reported after-tax adjusted operating income of approximately $1.3 billion, or $3.61 per common share. She said the results were driven mainly by higher spread income in Prudential’s U.S. and international insurance businesses, as well as improved life underwriting performance. According to del Frias, those gains were partly offset by higher operating expenses, including costs related to the sales suspension at Prudential of Japan.

Prudential Financial, Inc. (NYSE:PRU) is a financial services company and global investment manager. It provides a range of products and services, including life insurance, annuities, retirement-related solutions, mutual funds, and investment management services.

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