1 Unprofitable Stock That Stand Out and 2 to Steer Clear Of

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.
Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. That said, here is one unprofitable company investing heavily to secure market share and two that could struggle to survive.
Trailing 12-Month GAAP Operating Margin: -181%
Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ:RUN) provides residential solar electricity, specializing in panel installation and leasing services.
Why Is RUN Not Exciting?
Annual sales declines of 6.3% for the past two years show its products and services struggled to connect with the market during this cycle
Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions
Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Sunrun's stock price of $7.18 implies a valuation ratio of 9.7x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than RUN.
Trailing 12-Month GAAP Operating Margin: -51.2%
Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.
Why Does EVGO Give Us Pause?
Suboptimal cost structure is highlighted by its history of operating losses
Cash burn makes us question whether it can achieve sustainable long-term growth
Short cash runway increases the probability of a capital raise that dilutes existing shareholders
EVgo is trading at $2.83 per share, or 183.5x forward EV-to-EBITDA. If you're considering EVGO for your portfolio, see our FREE research report to learn more.
Trailing 12-Month GAAP Operating Margin: -3%
Founded by George Kurtz, the former CTO of the antivirus company McAfee, CrowdStrike (NASDAQ:CRWD) provides cybersecurity software that protects companies from breaches and helps them detect and respond to cyber attacks.
Why Is CRWD a Top Pick?
ARR trends over the last year show it's maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability
Projected revenue growth of 21.1% for the next 12 months suggests its momentum from the last three years will persist
Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
At $429 per share, CrowdStrike trades at 22.3x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free.
Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.
While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years.
Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free.

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The latest inflation data is in. Here's how Utahns are feeling about family costs since Trump took office

After hitting a four-year low in April, prices on U.S. goods and services inched up last month, with annual inflation coming in at 2.4%, according to a Wednesday report from the Labor Department. On a monthly basis, inflation ticked up 0.1% from April to May, suggesting a raft of new import tariffs have yet to impact consumer prices. A new Deseret News/Hinckley Institute of Politics survey finds Utahns are decidedly mixed when it comes to their feelings about President Donald Trump's game plan for controlling rising costs. Core inflation, a measure that excludes volatile food and energy prices, also moved up 0.1% on a monthly basis in May, with overall prices moving up 2.8% over the last 12 months. The group of Mountain West states, which include Utah, saw an annual inflation rate of 1.7% in May, among the lowest regional rates in the country but up 0.5% from April. The latest Consumer Price Index readings show declines in energy costs and vehicle prices helped offset continued increases in the cost of groceries, eating at restaurants and housing-related costs. The cost of groceries and buying food away from home both increased by 0.3% from April to May with annual rates last month at 2.9% and 2.2%, respectively. Shelter-related costs in May, computed by the Bureau of Labor Statistics utilizing data from new rents, existing lease agreements and a rent-equivalent calculation for owner properties, were 3.9% higher over the last year and up 0.3% from April. The Labor Department says housing cost increases were the 'primary factor' behind rising inflation in May. Overall energy costs declined by 3.5% since this time last year and gasoline prices moved down by 2.6% from April to May and were 12% lower on an annual basis. Inflation figures for May came in lower than were widely expected, but some economists predict tariff-related increases are still in play and simply haven't trickled down the checkout aisles yet. 'Today's below-forecast inflation print is reassuring — but only to an extent,' Seema Shah, chief global strategist at Principal Asset Management, told CNBC. 'Tariff-driven price increases may not feed through to the CPI data for a few more months yet, so it is far too premature to assume that the price shock will not materialize.' U.S. inflation has marched down, albeit erratically, since hitting a 40-year high of 9.1% in June 2022, but rates have remained stubbornly above the Fed's target annual rate of 2% since then. And while Trump made addressing inflation issues a forward message in his successful campaign for a second term in office, Utahns have mixed opinions about the job he's done so far. The reviews however, perhaps not surprisingly, break sharply along partisan lines. In a statewide online survey conducted May 16-21 of 805 registered Utah voters, HarrisX asked respondents 'Do you approve or disapprove of the job Donald Trump is doing handling inflation?'. Overall results were essentially split with 50% of poll participants saying they somewhat or strongly approve and 43% falling into the somewhat or strongly disapprove camp. But that apparent equanimity dissolves when the responses are parsed by political affiliation. Some 70% of Republican respondents versus 19% of Democrats weighed-in as somewhat or strongly approving of Trump's work on inflation. On the flip side, only 22% of Republicans said they somewhat or strongly disapproved of Trump's inflation tactics, against 81% of Democrats who participated in the poll. The responses when asked 'Has inflation during the Trump Administration gotten better, worse or stayed the same?' were, again, nearly evenly disbursed among the poll participants, outside the lens of politics. Overall, 31% of respondents said inflation has gotten better since Trump took office, 36% said worse and 33% said inflation was about the same. When flying their party colors, 41% of Republicans versus 14% of Democrats said inflation was better so far in Trump's second term, while 19% of Republicans next to 70% of Democrats believe inflation has become worse. For those who told surveyors that inflation from their perspective has stayed the same since Jan. 20, 40% were Republicans and 17% were Democrats. Data from the Deseret News/Hinckley Institute of Politics polling comes with a plus or minus 3.5% margin of error. So, what does the data say about how inflation has changed so far under President Trump? Last December, ahead of Trump's inauguration, annual CPI inflation was 2.9%, according to Labor Dept. data. In January of this year, that rate bumped up to 3%. February, March and April all saw incremental declines with annual readings of 2.8%, 2.4% and 2.3%, respectively.

Yahoo

37 minutes ago

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Majority of Utahns support spending cuts, say DOGE has been effective

WASHINGTON — A vast majority of Utah voters say they support cutting the size of the government as Congress works to approve spending cuts implemented by the Department of Government Efficiency earlier this year. Nearly 80% of Utahns say they support downsizing the government, according to a new poll conducted by HarrisX for the Deseret News. That sentiment was largely shared among those who identify themselves as Republican, with 91% saying they support compared to just 9% who said they oppose. Democratic voters were more split among themselves, as 47% said they supported cutting the size of the government compared to 53% who said the opposite, according to the poll. Since President Donald Trump was sworn into office in January, the DOGE commission has identified spending cuts officials say would save the government billions of dollars. Congress has begun the process of approving those cuts, although lawmakers — Republicans and Democrats like — are torn on whether they agree with what's on the chopping block. A majority (60%) of Utahns say DOGE has been effective at identifying spending cuts compared to just 40% who said the opposite, the poll shows. That opinion is largely split along party lines, as 80% of Republicans said DOGE was effective, with only 29% of Democrats saying the same. On the other hand, 71% of Democrats said DOGE was ineffective compared to just 20% of Republicans who agreed with that sentiment. But when it comes to DOGE cuts and slashed funding, Utah voters say they feel mostly unaffected. A majority of Utahns (67%) say they don't know anyone who has lost their job because of the DOGE cuts, according to the poll. About 12% say a close friend has lost their job, 8% say a family member and another 17% say an acquaintance lost their job due to the DOGE cuts. Roughly 4% report their job was terminated because of DOGE cuts, the poll shows. The poll was conducted between May 16-21 among 805 registered voters in Utah. The margin of error is plus or minus 3.5 percentage points. Proposed spending cuts are already making their way through Congress, with the House approving a $9.4 billion rescissions package on Thursday targeting foreign aid as well as federal funding for organizations the Trump administration has accused of being anti-conservative. The package was opposed by all Democrats, and a handful of Republicans also opposed the package. However, it underscores a desire among Trump allies to codify the cuts identified by DOGE as 'waste, fraud, and abuse' as quickly as possible. The recent sentiments also come in contrast to Deseret News polling last month that showed Utah voters believe the federal government should spend more money in several different areas, with foreign funding a strong exception.

USA Today

42 minutes ago

• USA Today

Investors brace for oil price spike, rush to havens after US bombs Iran nuclear sites

NEW YORK - A U.S. attack on Iranian nuclear sites on Saturday could lead to a knee-jerk reaction in global markets when they reopen, sending oil prices higher and triggering a rush to safety, investors said, as they assessed how the latest escalation of tensions would ripple through the global economy. The attack, which was announced by President Donald Trump on social media site Truth Social, deepens U.S. involvement in the Middle East conflict. That was the question going into the weekend, when investors were mulling a host of different market scenarios. In the immediate aftermath of the announcement, they expected the U.S. involvement was likely to cause a selloff in equities and a possible bid for the dollar and other safe-haven assets when trading begins, but also said much uncertainty about the course of the conflict remained. Updates: U.S. hits Iran nuclear facilities, braces for counterattack While Trump called the attack "successful", few details were known. He was expected to address the nation later on Saturday. "I think the markets are going to be initially alarmed, and I think oil will open higher," said Mark Spindel, chief investment officer at Potomac River Capital. "We don't have any damage assessment and that will take some time. Even though he has described this as 'done', we're engaged. What comes next?" Spindel said. "I think the uncertainty is going to blanket the markets, as now Americans everywhere are going to be exposed. It's going to raise uncertainty and volatility, particularly in oil," he added. Spindel, however, said there was time to digest the news before markets open and said he was making arrangements to talk to other market participants. How will oil prices and inflation be affected? A key concern for markets would center around the potential impact of the developments in the Middle East on oil prices and thus on inflation. A rise in inflation could dampen consumer confidence and lessen the chance of near-term interest rate cuts. "This adds a complicated new layer of risk that we'll have to consider and pay attention to," said Jack Ablin, chief investment officer of Cresset Capital. "This is definitely going to have an impact on energy prices and potentially on inflation as well." While global benchmark Brent crude futures have risen as much as 18% since June 10, hitting a near five-month high of $79.04 on Thursday, the S&P 500 has been little changed, following an initial drop when Israel launched its attacks on Iran on June 13. Before the U.S. attack on Saturday, analysts at Oxford Economics modeled three scenarios, including a de-escalation of the conflict, a complete shutdown in Iranian oil production and a closure of the Strait of Hormuz, "each with increasingly large impacts on global oil prices." Israel-Iran timeline: How Israeli attack and Iranian retaliation unfolded In the most severe case, global oil prices jump to around $130 per barrel, driving U.S. inflation near 6% by the end of this year, Oxford said in the note. "Although the price shock inevitably dampens consumer spending because of the hit to real incomes, the scale of the rise in inflation and concerns about the potential for second-round inflation effects likely ruin any chance of rate cuts in the U.S. this year," Oxford said in the note, which was published before the U.S. strikes. In comments after the announcement on Saturday, Jamie Cox, managing partner at Harris Financial Group, agreed oil prices would likely spike on the initial news. But Cox said he expected prices to likely level in a few days as the attacks could lead Iran to seek a peace deal with Israel and the United States. "With this demonstration of force and total annihilation of its nuclear capabilities, they've lost all of their leverage and will likely hit the escape button to a peace deal," Cox said. Economists warn that a dramatic rise in oil prices could damage a global economy already strained by Trump's tariffs. Still, any pullback in equities might be fleeting, history suggests. During past prominent instances of Middle East tensions coming to a boil, including the 2003 Iraq invasion and the 2019 attacks on Saudi oil facilities, stocks initially languished but soon recovered to trade higher in the months ahead. On average, the S&P 500 slipped 0.3% in the three weeks following the start of conflict, but was 2.3% higher on average two months following the conflict, according to data from Wedbush Securities and CapIQ Pro. What will this mean for the US dollar? An escalation in the conflict could have mixed implications for the U.S. dollar, which has tumbled this year amid worries over diminished U.S. exceptionalism. In the event of U.S. direct engagement in the Iran-Israel war, the dollar could initially benefit from a safety bid, analysts said. "Do we see a flight to safety? That would signal yields going lower and the dollar getting stronger," said Steve Sosnick, chief market strategist at IBKR in Greenwich, Connecticut. "It's hard to imagine stocks not reacting negatively and the question is how much. It will depend on Iranian reaction and whether oil prices spike." (Reporting by Saqib Iqbal Ahmed, Lewis Krauskopf, Suzanne McGee and Saeed Azhar; Editing by Megan Davies, Diane Craft, Peter Henderson, Marguerita Choy and Jamie Freed)