Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around. Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.
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 are two unprofitable companies that could turn today’s losses into long-term gains and one best left off your radar.
One Stock to Sell:
Molson Coors (TAP)
Trailing 12-Month GAAP Operating Margin: -20.3%
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE: TAP) is a global brewing giant with a rich history dating back more than two centuries.
Why Do We Avoid TAP?
- Shrinking unit sales over the past two years show it’s struggled to move its products and had to rely on price increases
- Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 33.7 percentage points
- Underwhelming -0.7% return on capital reflects management’s difficulties in finding profitable growth opportunities, and its decreasing returns suggest its historical profit centers are aging
Molson Coors’s stock price of $47.64 implies a valuation ratio of 8.6x forward P/E. Read our free research report to see why you should think twice about including TAP in your portfolio.
Two Stocks to Buy:
Planet Labs (PL)
Trailing 12-Month GAAP Operating Margin: -27.8%
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 Will PL Outperform?
- Market share has increased this cycle as its 23.1% annual revenue growth over the last five years was exceptional
- Free cash flow profile has moved into positive territory over the last five years, indicating the company has achieved financial self-sustainability
- Historical investments are beginning to pay off as its returns on capital are growing
At $22.72 per share, Planet Labs trades at 903.4x forward EV-to-EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
Oscar Health (OSCR)
Trailing 12-Month GAAP Operating Margin: -1.9%
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Why Should You Buy OSCR?
- Annual revenue growth of 39.7% over the past two years was outstanding, reflecting market share gains this cycle
- Earnings growth has massively outpaced its peers over the last four years as its EPS has compounded at 30.3% annually
- Free cash flow margin grew by 12.8 percentage points over the last five years, giving the company more chips to play with
Oscar Health is trading at $17.77 per share, or 0.3x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
