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.
A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here is one unprofitable company that could turn today’s losses into long-term gains and two that could struggle to survive.
Two Stocks to Sell:
Clarus (CLAR)
Trailing 12-Month GAAP Operating Margin: -28.8%
Initially a financial services business, Clarus (NASDAQ: CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.
Why Is CLAR Risky?
- Sales tumbled by 10.6% annually over the last two years, showing consumer trends are working against its favor
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
Clarus is trading at $3.47 per share, or 21.5x forward P/E. Read our free research report to see why you should think twice about including CLAR in your portfolio.
Dentsply Sirona (XRAY)
Trailing 12-Month GAAP Operating Margin: -28.2%
With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ: XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide.
Why Do We Avoid XRAY?
- Underwhelming constant currency revenue performance over the past two years suggests its product offering at current prices doesn’t resonate with customers
- Negative returns on capital show management lost money while trying to expand the business, and its shrinking returns suggest its past profit sources are losing steam
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
At $13.98 per share, Dentsply Sirona trades at 7.1x forward P/E. To fully understand why you should be careful with XRAY, check out our full research report (it’s free).
One Stock to Buy:
Monday.com (MNDY)
Trailing 12-Month GAAP Operating Margin: -1.8%
Founded in 2014 and named after the dreaded first day of the work week, Monday.com (NASDAQ: MNDY) is a software-as-a-service platform that helps organizations plan and track work efficiently.
Why Will MNDY Beat the Market?
- ARR growth averaged 30.4% over the last year, showing customers are willing to take multi-year bets on its software
- Superior software functionality and low servicing costs are reflected in its best-in-class gross margin of 89.4%
- Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
Monday.com’s stock price of $179.50 implies a valuation ratio of 7x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
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 5 Strong Momentum Stocks for this week. 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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