In this article, we discuss 10 Cash-Rich Mid Cap Stocks To Buy Now.
Cash flow is the money moving in and out of a business over a set period. It is important because it shows how much cash a company actually has on hand, rather than just looking at profits on paper. There are different types of cash flow, like cash from operating activities, which comes from a company’s main business, and free cash flow, which is the money left after covering expenses and investments. Businesses keep a close eye on their cash flow to make sure they have enough money to pay bills, invest in growth, and avoid financial trouble. Unlike profits, which can be affected by accounting rules, cash flow reflects real money coming in and going out, making it a key measure of financial health.
Warren Buffett once said that the key to investing is cash flow. How much money a business brings in and how much it pays out over time is crucial. However, despite this basic principle, many companies do not focus enough on cash flow and how efficiently they use their money.
In October 2022, market experts on CNBC’s Halftime Report emphasized the crucial role of free cash flow for businesses. They pointed out that while companies can occasionally rely on external funding from capital markets, they ultimately depend on free cash flow to sustain themselves, since these external financial boosts are not a long-term solution. As the market fluctuates between favoring growth and value stocks, investors tend to gravitate toward familiar territory, which is prioritizing companies with strong free cash flow.
Similarly, in late September 2023, Elizabeth Evans, managing partner at Evans May, told CNBC that for the first time in decades, cash holdings are generating returns. She explained that having substantial cash reserves signals strong future purchasing power, which is an encouraging sign for equity investors looking to invest for the long term. In this article, we will take a look at some cash-rich stocks to buy.
Photo by buian_photos on Unsplash
Our Methodology
For this article, we used the Finviz stock screener to identify cash-rich mid-cap stocks. We applied a filter to select companies with market caps between $2 billion and $10 billion. Additionally, we used a current ratio (CR) filter of over 2 to identify stocks with strong current assets. CR is a company’s current assets divided by its current liabilities. If the CR is over 1, it means the company has more assets than liabilities, usually because of high cash reserves, receivables, or inventory. After filtering, we manually searched for companies with cash and cash equivalents exceeding $1 billion as of December 31, 2024 and selected the 10 stocks with the highest cash reserves. The list below is ranked in ascending order based on cash and cash equivalents. We have also included hedge fund sentiment as of Insider Monkey’s database of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. GitLab Inc. (NASDAQ:GTLB)
Number of Hedge Fund Holders: 51
Cash and Cash Equivalents as of December 31, 2024: $1,036,285,000
GitLab Inc. (NASDAQ:GTLB) is a software company that helps businesses streamline their DevOps process. Its platform makes it easier to plan, build, secure, and deploy software while improving speed and visibility. The company also provides training and professional services. In the third fiscal quarter of 2025, GitLab joined forces with AWS to launch an integrated solution combining GitLab Duo and Amazon Q. This partnership makes it easier for developers to work with AI-powered DevSecOps workflows in AWS environments, helping organizations deploy secure software faster.
In the third fiscal quarter of 2025, GitLab Inc. (NASDAQ:GTLB) raked in $196 million in revenue, a solid 31% increase from last year. The company expanded its customer base, with the number of clients spending over $5,000 in ARR increasing by 16% to 9,519, while those spending more than $100,000 grew by 31% to 1,144. Profitability also improved, with non-GAAP operating income soaring to $25.9 million from $4.7 million a year ago, while adjusted free cash flow turned positive at $9.7 million, compared to a negative $6.7 million last year. Looking ahead, GitLab Inc. (NASDAQ:GTLB) forecasts Q4 revenue between $205 million and $206 million, reflecting 25% to 26% year-over-year growth. It is one of the best cash rich stocks to buy.
According to Insider Monkey’s fourth quarter database, 51 hedge funds were bullish on GitLab Inc. (NASDAQ:GTLB), compared to 43 funds in the prior quarter. Mick Hellman’s HMI Capital is the leading stakeholder of the company, with 4.46 million shares worth $251.6 million.
9. Exact Sciences Corporation (NASDAQ:EXAS)
Number of Hedge Fund Holders: 49
Cash and Cash Equivalents as of December 31, 2024: $1,038,026,000
Exact Sciences Corporation (NASDAQ:EXAS) develops cancer screening and diagnostic tests, with its flagship product, Cologuard, offering a non-invasive way to detect colorectal cancer. On February 5, 2025, Flatiron Health and Exact Sciences announced a partnership to use Flatiron’s research platform to analyze data from Exact Sciences’ Oncodetect MRD test. The collaboration commenced with a clinical study involving 1,350 patients to track cancer recurrence across different solid tumors. The goal is to collect real-world data from diverse patients to help oncologists integrate MRD testing into precision cancer care.
In Q4 2024, Exact Sciences Corporation (NASDAQ:EXAS)’s revenue grew 10%, with adjusted EBITDA increasing 52% to $75 million. Screening revenue rose 14% to $553 million, fueled by strong Cologuard adoption, while precision oncology revenue saw a slight increase to $161 million. The company also strengthened its balance sheet in 2024, more than doubling free cash flow and ending the year with $1.04 billion in cash and securities. Looking ahead to 2025, revenue is expected to fall between $680 million and $695 million for Q1 and $3.025 billion to $3.085 billion for the full year.
Among the hedge funds tracked by Insider Monkey, 49 funds reported owning stakes in Exact Sciences Corporation (NASDAQ:EXAS) at the end of Q4, compared to 41 funds in the prior quarter. Israel Englander’s Millennium Management is the biggest stakeholder of the company, with 2.36 million shares worth $132.6 million.
8. Qiagen N.V. (NYSE:QGEN)
Number of Hedge Fund Holders: 28
Cash and Cash Equivalents as of December 31, 2024: $1,057,782,000
Founded in 1984 and based in the Netherlands, Qiagen N.V. (NYSE:QGEN) specializes in molecular testing, providing tools for sample processing, DNA/RNA purification, and advanced PCR and NGS technologies. Its products are used for disease detection, genetic analysis, forensic testing, and pharmaceutical research. On February 14, 2025, the company launched a new data center in Melbourne, Australia, to expand its bioinformatics capabilities in the Asia Pacific region. This move strengthens its global network, which already includes seven data centers worldwide, and supports the growing demand for genomic testing solutions. QGEN ranks 8th on our list of the best cash rich stocks.
In Q4 2024, Qiagen N.V. (NYSE:QGEN)’s operating margin rose to 30.6%, driven by efficiency gains and the Numodix phase-out. Free cash flow increased 63% to €506 million, which sets the company on the path to achieve its goals. QGEN repurchased $300 million in shares, aiming to return $1 billion to shareholders by 2028. The company expects steady growth in 2025, driven by increased demand for diagnostic solutions and modest gains in PCR and genomics. To support long-term growth, Qiagen is preparing to launch three new sample tech systems within the next two years.
According to Insider Monkey’s Q4 data, 28 hedge funds reported owning stakes in Qiagen N.V. (NYSE:QGEN), compared to 26 funds in the last quarter. Marshall Wace LLP is the biggest stakeholder of the company, with a position worth $63.7 million.
7. Mueller Industries, Inc. (NYSE:MLI)
Number of Hedge Fund Holders: 34
Cash and Cash Equivalents as of December 31, 2024: $1,059,103,000
Mueller Industries, Inc. (NYSE:MLI) is a prominent player in the manufacturing sector, producing copper, brass, aluminum, and plastic products across the US, the UK, Canada, South Korea, the Middle East, China, and Mexico. It is one of the best cash rich stocks to watch out for. In August 2024, Mueller acquired Elkhart Products Corporation, an American manufacturer of copper solder fittings with plants in Indiana and Arkansas. The deal was expected to speed up the recovery of Mueller’s copper fittings business in Covington, Tennessee, which was hit hard by a tornado in 2023.
In the fourth quarter of 2024, Mueller Industries, Inc. (NYSE:MLI)’s net sales increased to $191.2 million, driven by recent acquisitions and stronger demand for US construction products. Higher copper prices also contributed, with COMEX copper averaging $4.22 per pound, up 13% from the previous year. The company generated $140.1 million in cash from operations in Q4 and $645.9 million for the year, ending with $1.06 billion in cash and short-term investments. On February 21, 2025, Mueller declared a $0.25 per share quarterly dividend, a 25% increase from its earlier dividend of $0.20. The dividend is payable on March 28, to shareholders on record as of March 14.
Among the hedge funds tracked by Insider Monkey in the fourth quarter, 34 funds were bullish on Mueller Industries, Inc. (NYSE:MLI), compared to 27 funds in the prior quarter. Mario Gabelli’s GAMCO Investors is the largest stakeholder of the company, with 2.70 million shares valued at $214.5 million.
6. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 39
Cash and Cash Equivalents as of December 31, 2024: $1,622,590,000
Enphase Energy, Inc. (NASDAQ:ENPH) ranks 6th on our list of the best cash rich stocks. The company makes smart home energy solutions for the solar industry. It specializes in microinverters that convert energy at the panel level, battery storage systems, energy monitoring software, and EV chargers. On February 11, 2025, Enphase expanded its IQ Battery 5P to work with both single-phase and split-phase voltage, making it a great fit for new homes in California, while being cost effective. Fully compliant with state energy regulations, it helps builders meet solar requirements while maximizing storage benefits under NEM 3.0.
In Q4 2024, Enphase Energy, Inc. (NASDAQ:ENPH) made $382.7 million in revenue, a slight increase from $380.9 million in Q3. Sales in the United States grew by 6%, given the strong demand for microinverters, but European sales took a 25% hit due to weaker demand. Fourth quarter free cash flow came in at $159.2 million, with total cash and investments reaching $1.72 billion at the end of the year. In Q4, Enphase repurchased 2.88 million shares for $199.7 million at an average price of $69.25. The company also spent $5 million on share withholding for employee stock vesting, reducing diluted shares by 68,532.
According to Insider Monkey’s fourth quarter database, 39 hedge funds were bullish on Enphase Energy, Inc. (NASDAQ:ENPH), compared to 38 funds in the last quarter.
5. Vaxcyte, Inc. (NASDAQ:PCVX)
Number of Hedge Fund Holders: 50
Cash and Cash Equivalents as of December 31, 2024: $1,747,208,000
Vaxcyte, Inc. (NASDAQ:PCVX) is a California-based biotech company focused on developing next-generation vaccines for bacterial infections. On February 27, Vaxcyte announced that it is pushing forward with its VAX-31 pneumococcal vaccine and scaling up production with Lonza. In 2024, the company invested $127.8 million in a dedicated manufacturing suite at Lonza’s Ibex Biopark in Switzerland, bringing its total investment to $214.3 million. It is one of the best cash rich stocks to invest in.
By the end of 2024, Vaxcyte, Inc. (NASDAQ:PCVX)’s cash and investments had increased to $3.13 billion, more than doubling from $1.24 billion in 2023, supported by $2.2 billion raised through financing during the year. R&D spending also saw a big jump, reaching $476.6 million for the year, up from $332.3 million. This was mainly due to expanded development, manufacturing efforts, and hiring for its PCV programs. In November 2024, Vaxcyte’s VAX-31 vaccine received Breakthrough Therapy designation from the FDA for preventing invasive pneumococcal disease in adults. The designation was based on promising results from its Phase 1/2 study.
Insider Monkey’s database shows that 50 hedge funds held stakes in Vaxcyte, Inc. (NASDAQ:PCVX) during Q4 2024, compared to 48 funds in the last quarter. RA Capital Management is the leading position holder in the company, with a stake worth $711.3 million.
4. Revolution Medicines, Inc. (NASDAQ:RVMD)
Number of Hedge Fund Holders: 60
Cash and Cash Equivalents as of December 31, 2024: $2,289,299,000
Revolution Medicines, Inc. (NASDAQ:RVMD) is a clinical-stage oncology company that focuses on providing targeted therapies for RAS-driven cancers. On December 3, 2024, the company announced that it is raising around $750 million through a stock offering. Revolution planned to sell over 14.1 million shares at $46 each, plus pre-funded warrants for an additional 2.17 million shares. Investors also had the option to buy 2.44 million more shares within 30 days. Prominent banks like JP Morgan and Goldman Sachs led the deal, which was expected to close by December 5, 2024. It is one of the best cash rich stocks to invest in.
In December 2024, Revolution Medicines, Inc. (NASDAQ:RVMD) raised $823 million through a public equity offering, strengthening its cash reserves to $2.3 billion. The funds will help expand its product pipeline and prepare for the potential launch of daraxonrasib, after FDA approval is received. R&D spending jumped to $188.1 million in Q4 2024, mainly due to increased clinical trial costs and hiring. Meanwhile, general and administrative expenses dropped to $28.2 million from $32.2 million last year, mostly because of the wind down of EQRx. The company reported a net loss of $194.6 million for the quarter, up from $161.5 million the previous year.
In the fourth quarter of 2024, 60 hedge funds were bullish on Revolution Medicines, Inc. (NASDAQ:RVMD), up from 44 funds in the earlier quarter. Farallon Capital was the largest stakeholder of the company, with 13.2 million shares worth $579.5 million.
3. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Number of Hedge Fund Holders: 49
Cash and Cash Equivalents as of December 31, 2024: $2,992,864,000
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) develops treatments for conditions like narcolepsy, epilepsy, leukemia, and cancer. It is one of the best cash rich stocks to invest in. On December 6, 2024, the company shared new research on Epidiolex (cannabidiol) at the American Epilepsy Society 2024 conference, showing its benefits beyond just seizure control. Studies demonstrated improvements in cognition, communication, and emotional well-being for patients with epilepsy and tuberous sclerosis complex (TSC). Caregivers and nurses reported fewer seizures and improved quality of life, with most continuing treatment. The EpiCom trial found Epidiolex also reduced behavioral issues in TSC patients, reinforcing its broad-spectrum effectiveness.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) had a strong 2024, generating over $4 billion in revenue with solid growth across its sleep, epilepsy, and oncology portfolio, each bringing in over $1 billion annually. The company achieved major milestones, including the FDA’s accelerated approval of Ziihera for HER2+ biliary tract cancer and promising advancements in late-stage pipeline assets. The company ended 2024 with $3 billion in cash and made a voluntary $750 million debt prepayment, reinforcing its strong position for continued growth in 2025.
According to Insider Monkey’s fourth quarter database, 49 hedge funds were long on Jazz Pharmaceuticals plc (NASDAQ:JAZZ), compared to 40 funds in the preceding quarter.
2. Bunge Global SA (NYSE:BG)
Number of Hedge Fund Holders: 38
Cash and Cash Equivalents as of December 31, 2024: $3,795,000,000
Bunge Global SA (NYSE:BG), an American multinational agribusiness and food company, ranks 2nd on our list of the best cash rich stocks. On January 15, 2025, Canada gave conditional approval to Bunge’s $34 billion merger with Viterra, clearing one of the last major hurdles for the massive agriculture deal. To move forward, Bunge is required to sell six grain elevators in Western Canada and commit to investing at least C$520 million in the country over the next five years. This merger creates a global agricultural giant, boosting Bunge Global SA (NYSE:BG)’s biofuels market position but reducing competition for farmers.
The company generated $1.7 billion in adjusted funds from operations in 2024. After spending $451 million on maintenance and safety, the company had $1.2 billion left in discretionary cash flow. Bunge Global SA (NYSE:BG) used this money to distribute $378 million in dividends, invest $925 million in growth projects, and buy back $1.1 billion in shares, $500 million of which came from selling its Sugar JV. This led to a $444 million reduction in retained cash flow. The company expects an adjusted EPS of about $7.75 for 2025, not factoring in pending acquisitions.
Among the hedge funds tracked by Insider Monkey, 38 funds were bullish on Bunge Global SA (NYSE:BG) during Q4 2024, compared to 33 funds in the last quarter.
1. Roivant Sciences Ltd. (NASDAQ:ROIV)
Number of Hedge Fund Holders: 44
Cash and Cash Equivalents as of December 31, 2024: $6,535,706,000
Roivant Sciences Ltd. (NASDAQ:ROIV) is a biopharmaceutical company focused on developing and bringing medicines to market, especially for inflammation and immune-related diseases. Looking ahead, 2025 and 2026 will be crucial years for Roivant. The company expects to release multiple drug trial results in 2025, including key studies for batoclimab and brepocitinib. Additionally, it plans to launch 10 new clinical trials for IMVT-1402 by early 2026, further expanding its focus on autoimmune treatments. It is one of the best cash rich stocks to monitor.
Roivant Sciences Ltd. (NASDAQ:ROIV) reported $5.2 billion in cash at the end of 2024, strengthening its ability to invest in drug development. In January 2025, it received an additional $75 million after its skin treatment VTAMA was approved for atopic dermatitis. Roivant’s subsidiary, Immunovant, also raised $450 million in private funding, increasing Roivant’s ownership in the company to 57%. Moreover, the company is engaged in a legal battle with Moderna over technology rights, specifically involving lipid nanoparticle delivery systems. The case is progressing, with a jury trial set for September 2025. The outcome could have financial and strategic implications for ROIV.
According to Insider Monkey’s Q4 database, 44 hedge funds reported owning stakes in Roivant Sciences Ltd. (NASDAQ:ROIV), compared to 50 funds in the prior quarter. Andreas Halvorsen’s Viking Global was one of the top stakeholders of the company, with a position worth $565.6 million.
Overall, Roivant Sciences Ltd. (NASDAQ:ROIV) ranks first on our list of the best cash-rich mid cap stocks to buy. While we acknowledge the potential of ROIV to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ROIV but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
