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.
Finding the right unprofitable companies is difficult, which is why we started StockStory - to help you navigate the market. Keeping that in mind, here is one unprofitable company investing heavily to secure market share and two best left off your radar.
Two Stocks to Sell:
Avis Budget Group (CAR)
Trailing 12-Month GAAP Operating Margin: -2%
The parent company of brands such as Zipcar and Budget Truck Rental, Avis (NASDAQ: CAR) is a provider of car rental and mobility solutions.
Why Should You Dump CAR?
- Sluggish trends in its available rental days - car rental suggest customers aren’t adopting its solutions as quickly as the company hoped
- Eroding returns on capital suggest its historical profit centers are aging
- Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders
At $116 per share, Avis Budget Group trades at 3.7x forward EV-to-EBITDA. To fully understand why you should be careful with CAR, check out our full research report (it’s free).
AMN Healthcare Services (AMN)
Trailing 12-Month GAAP Operating Margin: -4.6%
With a network of thousands of healthcare professionals ranging from nurses to physicians to executives, AMN Healthcare (NYSE: AMN) provides healthcare workforce solutions including temporary staffing, permanent placement, and technology platforms for hospitals and healthcare facilities across the United States.
Why Should You Sell AMN?
- Declining travelers on assignment over the past two years imply it may need to invest in improvements to get back on track
- Projected sales decline of 7.6% over the next 12 months indicates demand will continue deteriorating
- Eroding returns on capital suggest its historical profit centers are aging
AMN Healthcare Services’s stock price of $20.30 implies a valuation ratio of 16.7x forward P/E. Check out our free in-depth research report to learn more about why AMN doesn’t pass our bar.
One Stock to Watch:
Bill.com (BILL)
Trailing 12-Month GAAP Operating Margin: -5.7%
Started by René Lacerte in 2006 after selling his previous payroll and accounting software company PayCycle to Intuit, Bill.com (NYSE: BILL) is a software as a service platform that aims to make payments and billing processes easier for small and medium-sized businesses.
Why Do We Like BILL?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 15.3% over the last year
- Software is difficult to replicate at scale and results in a top-tier gross margin of 84.5%
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
Bill.com is trading at $43 per share, or 2.8x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Stocks We Like Even More
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
