Running at a loss can be a red flag. Many of these businesses face mounting challenges as competition increases and funding becomes harder to secure.
Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. Keeping that in mind, here is one unprofitable company with the potential to become an industry leader and two that may never reach the Promised Land.
Two Stocks to Sell:
Amplitude (AMPL)
Trailing 12-Month GAAP Operating Margin: -26.9%
Born from the realization that companies were flying blind when it came to understanding user behavior in their digital products, Amplitude (NASDAQ: AMPL) provides a digital analytics platform that helps businesses understand how people use their digital products to improve user experiences and drive revenue growth.
Why Does AMPL Give Us Pause?
- Struggled to drive increased usage of its software, demonstrated by its subpar 103% net revenue retention rate
- Persistent operating margin losses suggest the business manages its expenses poorly
- Poor free cash flow margin of 5.5% for the last year limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
At $6.60 per share, Amplitude trades at 2.1x forward price-to-sales. Check out our free in-depth research report to learn more about why AMPL doesn’t pass our bar.
NeoGenomics (NEO)
Trailing 12-Month GAAP Operating Margin: -14.2%
Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics (NASDAQ: NEO) provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.
Why Are We Hesitant About NEO?
- Subscale operations are evident in its revenue base of $746 million, meaning it has fewer distribution channels than its larger rivals
- Negative returns on capital show that some of its growth strategies have backfired
- High net-debt-to-EBITDA ratio of 6× increases the risk of forced asset sales or dilutive financing if operational performance weakens
NeoGenomics is trading at $11.12 per share, or 43.3x forward P/E. To fully understand why you should be careful with NEO, check out our full research report (it’s free).
One Stock to Watch:
Concentrix (CNXC)
Trailing 12-Month GAAP Operating Margin: -9.7%
With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.
Why Could CNXC Be a Winner?
- Annual revenue growth of 15.3% over the past five years was outstanding, reflecting market share gains this cycle
- $9.95 billion in revenue allows it to spread its fixed costs across a wider base
Concentrix’s stock price of $25.01 implies a valuation ratio of 2.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
