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. That said, here is one unprofitable company that could turn today’s losses into long-term gains and two best left off your radar.
Two Stocks to Sell:
Tenable (TENB)
Trailing 12-Month GAAP Operating Margin: -1.5%
Starting with the widely-used Nessus vulnerability scanner first released in 1998, Tenable (NASDAQ:TENB) provides exposure management solutions that help organizations identify, assess, and prioritize cybersecurity vulnerabilities across their IT infrastructure and cloud environments.
Why Are We Hesitant About TENB?
- Products, pricing, or go-to-market strategy may need some adjustments as its 10.5% average billings growth over the last year was weak
- Estimated sales growth of 7.5% for the next 12 months implies demand will slow from its two-year trend
- Operating margin expanded by 3.2 percentage points over the last year as it scaled and became more efficient
At $29.80 per share, Tenable trades at 3.5x forward price-to-sales. To fully understand why you should be careful with TENB, check out our full research report (it’s free for active Edge members).
Array (ARRY)
Trailing 12-Month GAAP Operating Margin: -17.2%
Going public in October 2020, Array (NASDAQ:ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Why Do We Think ARRY Will Underperform?
- Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth
- Earnings per share have contracted by 15.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
Array is trading at $9.05 per share, or 11.9x forward P/E. If you’re considering ARRY for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
monday.com (MNDY)
Trailing 12-Month GAAP Operating Margin: -1.8%
With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ:MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.
Why Should You Buy MNDY?
- Ability to secure long-term commitments with customers is evident in its 30.4% ARR growth over the last year
- Notable projected revenue growth of 23.6% for the next 12 months hints at market share gains
- Superior software functionality and low servicing costs result in a best-in-class gross margin of 89.4%
monday.com’s stock price of $186.35 implies a valuation ratio of 7.3x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .
High-Quality Stocks for All Market Conditions
Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.
Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. 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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