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. That said, here is one unprofitable company with the potential to become an industry leader and two best left off your radar.
Two Stocks to Sell:
Blink Charging (BLNK)
Trailing 12-Month GAAP Operating Margin: -205%
One of the first EV charging companies to go public, Blink Charging (NASDAQ: BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.
Why Does BLNK Give Us Pause?
- 5.4% annual revenue growth over the last two years was slower than its industrials peers
- Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Blink Charging is trading at $1.62 per share, or 1.4x forward price-to-sales. If you’re considering BLNK for your portfolio, see our FREE research report to learn more.
Masimo (MASI)
Trailing 12-Month GAAP Operating Margin: -12.8%
Founded in 1989 to solve the "unsolvable problem" of accurate pulse oximetry during patient movement, Masimo (NASDAQ: MASI) develops and manufactures noninvasive patient monitoring technologies, including its breakthrough pulse oximetry systems that accurately measure blood oxygen levels even during patient movement.
Why Are We Cautious About MASI?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 18.4% annually over the last two years
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $141.54 per share, Masimo trades at 25.9x forward P/E. Dive into our free research report to see why there are better opportunities than MASI.
One Stock to Buy:
Samsara (IOT)
Trailing 12-Month GAAP Operating Margin: -8.8%
From sensors on vehicles to AI-powered cameras that help prevent accidents, Samsara (NYSE: IOT) is a cloud-based Internet of Things platform that helps businesses improve the safety, efficiency, and sustainability of their physical operations.
Why Will IOT Outperform?
- Customers view its software as mission-critical to their operations as its ARR has averaged 31.8% growth over the last year
- Estimated revenue growth of 21.2% for the next 12 months implies its momentum over the last two years will continue
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
Samsara’s stock price of $38.76 implies a valuation ratio of 12.8x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free for active Edge members.
Stocks We Like Even More
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at 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-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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