Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth.
A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. That said, here is one unprofitable company investing heavily to secure market share and two best left off your radar.
Two Stocks to Sell:
Bark (BARK)
Trailing 12-Month GAAP Operating Margin: -7.7%
Making a name for itself with the BarkBox, Bark (NYSE:BARK) specializes in subscription-based, personalized pet products.
Why Are We Out on BARK?
- Products and services have few die-hard fans as sales have declined by 2.5% annually over the last five years
- Negative free cash flow raises questions about the return timeline for its investments
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
Bark is trading at $8.23 per share, or 8.8x forward EV-to-EBITDA. To fully understand why you should be careful with BARK, check out our full research report (it’s free).
JELD-WEN (JELD)
Trailing 12-Month GAAP Operating Margin: -8.8%
Founded in the 1960s as a general wood-making company, JELD-WEN (NYSE:JELD) manufactures doors, windows, and other related building products.
Why Is JELD Risky?
- Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
- Eroding returns on capital from an already low base indicate that management’s recent investments are destroying value
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
At $1.97 per share, JELD-WEN trades at 9x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why JELD doesn’t pass our bar.
One Stock to Buy:
Planet Labs (PL)
Trailing 12-Month GAAP Operating Margin: -27.2%
Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs (NYSE:PL) operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.
Why Are We Bullish on PL?
- Sales pipeline is in good shape as its backlog averaged 124% growth over the past two years
- Free cash flow flipped to positive over the last five years, showing the company is at an important crossroads
- Historical investments are beginning to pay off as its returns on capital are growing
Planet Labs’s stock price of $16.40 implies a valuation ratio of 364.3x forward EV-to-EBITDA. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.