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If you prefer to invest in companies that can easily cover their expenses with high amounts of cash in the bank, you may find this list interesting.

We ran a screen on stocks of the S&P 500 for those rallying above their 20-day, 50-day and 200-day moving averages. We screened these stocks for those with high amounts of cash relative to their average quarterly operating expenses over the last year.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these companies are in a strong operational position? Use this list as a starting point for your own analysis.

List sorted by cash/average operating expense.

1. VeriSign, Inc. (NASDAQ:VRSN): Provides Internet infrastructure services to various networks worldwide. Market cap of $5.70B. The stock is currently trading at 2.75% above its 20-Day SMA, 7.03% above its 50-Day SMA, and 9.40% above its 200-Day SMA. Average quarterly operating expense over the last five quarters at $110.47M, vs. most recent cash and short term investments at $1,234.92M, implies a Cash / Avg. Operating Expense ratio at 11.18. The stock is a short squeeze candidate, with a short float at 6.43% (equivalent to 5.9 days of average volume). The stock has gained 16.75% over the last year.

2. Analog Devices Inc. (NASDAQ:ADI): Engages in the design, manufacture and marketing of analog, mixed-signal and digital signal processing integrated circuits used in industrial, communication, computer and consumer applications. Market cap of $10.72B. The stock is currently trading at 2.74% above its 20-Day SMA, 2.48% above its 50-Day SMA, and 1.10% above its 200-Day SMA. Average quarterly operating expense over the last five quarters at $481.11M, vs. most recent cash and short term investments at $3,592.46M, implies a Cash / Avg. Operating Expense ratio at 7.47. The stock has lost 1.48% over the last year.

3. Amgen Inc. (NASDAQ:AMGN): Develops, manufactures and markets human therapeutics based on advances in cellular and molecular biology for grievous illnesses primarily in the United States, Europe and Canada. Market cap of $55.89B. The stock is currently trading at 6.11% above its 20-Day SMA, 10.83% above its 50-Day SMA, and 14.51% above its 200-Day SMA. Average quarterly operating expense over the last five quarters at $2,713.8M, vs. most recent cash and short term investments at $17676M, implies a Cash / Avg. Operating Expense ratio at 6.51. The stock has gained 12.35% over the last year.

4. Microchip Technology Inc. (NASDAQ:MCHP): Develops and manufactures semiconductor products for various embedded control applications worldwide. Market cap of $6.85B. The stock is currently trading at 1.64% above its 20-Day SMA, 2.34% above its 50-Day SMA, and 2.75% above its 200-Day SMA. Average quarterly operating expense over the last five quarters at $253.15M, vs. most recent cash and short term investments at $1,415.44M, implies a Cash / Avg. Operating Expense ratio at 5.59. The stock is a short squeeze candidate, with a short float at 10.36% (equivalent to 8.59 days of average volume). The stock has gained 6.2% over the last year.

5. Microsoft Corporation (NASDAQ:MSFT): Develops, licenses and supports a range of software products and services for various computing devices worldwide. Market cap of $230.49B. The stock is currently trading at 6.84% above its 20-Day SMA, 6.85% above its 50-Day SMA, and 8.60% above its 200-Day SMA. Average quarterly operating expense over the last five quarters at $10,590.2M, vs. most recent cash and short term investments at $57403M, implies a Cash / Avg. Operating Expense ratio at 5.42. The stock has had a couple of great days, gaining 5.22% over the last week.

6. Cisco Systems, Inc. (NASDAQ:CSCO): Designs, manufactures and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry worldwide. Market cap of $102.09B. The stock is currently trading at 3.40% above its 20-Day SMA, 3.96% above its 50-Day SMA, and 13.95% above its 200-Day SMA. Average quarterly operating expense over the last five quarters at $8,918M, vs. most recent cash and short term investments at $44,388M, implies a Cash / Avg. Operating Expense ratio at 4.98. The stock has lost 6.08% over the last year.

7. Xilinx Inc. (NASDAQ:XLNX): Designs, develops and markets programmable platforms in North America, the Asia Pacific, Europe and Japan. Market cap of $8.42B. The stock is currently trading at 0.95% above its 20-Day SMA, 0.85% above its 50-Day SMA, and 1.24% above its 200-Day SMA. Average quarterly operating expense over the last five quarters at $404.15M, vs. most recent cash and short term investments at $1,807.55M, implies a Cash / Avg. Operating Expense ratio at 4.47. The stock has gained 11.11% over the last year.

8. Teradyne Inc. (NYSE:TER): Provides automatic test equipment products and services worldwide. Market cap of $2.61B. The stock is currently trading at 7.63% above its 20-Day SMA, 6.97% above its 50-Day SMA, and 3.23% above its 200-Day SMA. Average quarterly operating expense over the last five quarters at $296.28M, vs. most recent cash and short term investments at $1,191.7M, implies a Cash / Avg. Operating Expense ratio at 4.02. The stock is a short squeeze candidate, with a short float at 11.45% (equivalent to 5.18 days of average volume). The stock has gained 3.43% over the last year.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 8 Rallying S&P 500 Stocks With High Cash To Expenses