• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Top three ‘cash rich’ stocks that can weather any market downturn

by September 13, 2025
by September 13, 2025

With US equities hovering near record levels and economics indicators flashing warning signs – Morgan Stanley is urging investors to seek shelter in companies with robust free cash flows.

According to the investment firm, “cash-rich” businesses are better equipped to navigate volatility, thanks to their ability to self-finance operations and growth.

Amid rising unemployment and downward revisions to job creation, the appeal of these companies has grown.

Morgan Stanley has screened the Russell 1000 for names with strong cash-to-enterprise values and double-digit free cash flow growth projection. Among its top picks: DoorDash, Spotify, and FedEx.

FedEx Corp (NYSE: FDX)

FedEx stands out as a logistics heavyweight with a healthy cash cushion. Morgan Stanley expects its free cash flow to grow 31.4% in 2025 and another 14.9% in 2026.

Despite mixed earnings in the second quarter, the company’s financial flexibility remains intact, bolstered by its plan to spin off its freight division.

This strategic move could unlock operational efficiencies and sharpen focus on core delivery services.

FedEx’s ability to generate substantial cash even in a challenging macro environment makes it a compelling defensive play.

As Morgan Stanley noted, “companies with ample free-cash flow are self-financing,” and FedEx stock fits that bill.

FDX shares also currently pay a dividend yield of 2.51% – which makes them even more attractive to own for the longer term.

Spotify Inc (NYSE: SPOT)

Spotify continues to impress with its expanding user base and improving monetization.

The audio-streaming giant is projected to grow free cash flow by 27.6% in 2025 and 34.3% in 2026, as per Morgan Stanley.

The company’s second-quarter revenue rose 10% year-over-year, driven by premium subscriptions and advertising gains.

SPOT’s ability to convert top-line growth into meaningful cash reserves gives it a buffer against economic headwinds.

The firm’s scalable model and disciplined cost structure make it one of the most attractive names in the digital media space.

Other Wall Street firms agree with Morgan Stanley’s constructive view on SPOT shares, given the consensus rating on the music streaming app currently sits at “overweight”.

DoorDash Inc (NASDAQ: DASH)

DoorDash shares have emerged as a cash-generating force in the on-demand economy.

Morgan Stanley forecasts free cash flow growth of 26.6% this year and a striking 41.5% in 2026.

The company posted $3.3 billion in revenue for second quarter of 2025, up 25% on a year-over-year basis, fuelled by strong demand and rising DashPass subscriptions.

Despite competition from Uber Eats and others, DASH’s expanding margins and efficient capital allocation have helped it build a sizable war chest.

In a downturn, its cash-rich profile could be a key differentiator.

Note that Wall Street currently has a consensus “overweight” rating on DASH stock – with a mean target of about $297, indicating potential upside of nearly 20% from here.

The post Top three ‘cash rich’ stocks that can weather any market downturn appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
US digest: Tesla surge, consumer sentiment dips, Gemini makes debut
next post
AstraZeneca pauses £200mn Cambridge investment amid UK pharma uncertainty

Related Posts

Europe bulletin: Zelensky calls for more weapons, Russia...

October 25, 2025

Nvidia stock edges higher amid semiconductor sector rally...

October 25, 2025

AMD stock climbs 7%, breaching $400B market cap...

October 25, 2025

US digest: Jeffries endorses Mamdani, Ford’s stock surge,...

October 25, 2025

Trump seeks Asia mineral deals to ramp up...

October 25, 2025

Lucy Powell elected deputy leader of the UK’s...

October 25, 2025

Disney warns YouTube TV subscribers of potential blackout...

October 24, 2025

Top catalysts for the CAC 40 index next...

October 24, 2025

European stocks open higher, buoyed by a wave...

October 24, 2025

NatWest share price forecast as its earnings jump:...

October 24, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Europe bulletin: Zelensky calls for more weapons, Russia warns against EU sanctions

    October 25, 2025
  • Nvidia stock edges higher amid semiconductor sector rally and AI boom

    October 25, 2025
  • AMD stock climbs 7%, breaching $400B market cap amid chip sector rally

    October 25, 2025
  • US digest: Jeffries endorses Mamdani, Ford’s stock surge, US sanctions Colombian president

    October 25, 2025
  • Trump seeks Asia mineral deals to ramp up pressure on China’s Xi: report

    October 25, 2025
  • Lucy Powell elected deputy leader of the UK’s Labour Party

    October 25, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 7

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025

Categories

  • Economy (3,000)
  • Editor's Pick (295)
  • Investing (185)
  • Stock (2,048)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

China probes Qualcomm’s Autotalks deal; shares fall...

October 10, 2025

US needs ‘more negotiations’ with India on...

July 29, 2025

Three reasons why SoundHound’s 151% revenue surge...

May 13, 2025