by Ian Cooper

If it’s safety you’re after, you may want to jump into cash-rich stocks.

That’s because they offer security and stability with financial resilience in any market. 

For example, cash reserves act as a buffer during unexpected revenue shortfalls or market downturns. It also allows these companies to return value to shareholders by way of buybacks and dividends.

“Companies with ample free-cash flow are self-financing and may better withstand any deeper corrections in the market,” Morgan Stanley analysts said, as quoted by CNBC.

Look at DoorDash (DASH), for example.

With about $5 billion in cash on hand, the company is still generating strong free cash flow, with strong margins. According to Morgan Stanley, its DASH free cash flows are expected to grow about 26.6% this year and 41.5% in 2026. All thanks to very strong sales growth and an uptick in subscriptions for its premium service.

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Analysts at DA Davidson just raised their price target on DASH to $260 from $190. Wells Fargo analysts also raised their price target on DASH to $306 from $280 a share.

Last trading at $260.20, we’d like to see DASH initially retest its prior high of $278.15.

Spotify (SPOT)

With about $6.85 billion in cash, the company, the company is also generating strong cash flow. According to Morgan Stanley, it expects for SPOT to grow its free cash flows by 27.6% this year, and by 34.3% by 2026. It’s still able to amass free cash flow because of strong revenue growth.

Analysts at Citi raised their target to $750 from $715, believing the company is well-positioned to “absorb increased music costs from the record labels but thinks current consensus estimates underestimate the growth in wholesale cost of music,” as noted by Tip Ranks.

FedEx (FDX)

With about $5.5 billion in cash, the company’s free cash flows are expected to grow 31.4% this year, and by 14.9% in 2026, according to Morgan Stanley. “The company’s cash reserves have swelled despite its mixed second-quarter earnings report as it continues to pursue the spinning out of its freight business,” added CNBC.

Last trading at $228.81, we’d like to see FDX initially retest prior resistance at $244.20.