Nasdaq
華爾街日報1 Cash-Burning Stock with Exciting Potential and 2 Facing Headwinds
Rapid spending isn’t always a sign of progress. Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable.
Not all companies are worth the risk, and that’s why we built StockStory - to help you spot the red flags. That said, here is one high-risk, high-reward company with the potential to scale into a market leader and two that could run into serious trouble.
Two Stocks to Sell:
Sportsman's Warehouse (SPWH)
Trailing 12-Month Free Cash Flow Margin: -3.3%
A go-to destination for individuals passionate about hunting, fishing, camping, hiking, shooting sports, and more, Sportsman's Warehouse (NASDAQ:SPWH) is an American specialty retailer offering a diverse range of active gear, equipment, and apparel.
Why Is SPWH Risky?
- Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand
- Performance over the past three years was negatively impacted by new share issuances as its earnings per share dropped by 32.6% annually, worse than its revenue
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Sportsman's Warehouse’s stock price of $1.37 implies a valuation ratio of 24.7x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why SPWH doesn’t pass our bar.
Utz (UTZ)
Trailing 12-Month Free Cash Flow Margin: -1.8%
Tracing its roots back to 1921 when Bill and Salie Utz began making potato chips in their kitchen, Utz Brands (NYSE:UTZ) offers salty snacks such as potato chips, tortilla chips, pretzels, cheese snacks, and ready-to-eat popcorn, among others.
Why Do We Avoid UTZ?
- Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth
- Subscale operations are evident in its revenue base of $1.44 billion, meaning it has fewer distribution channels than its larger rivals
- Underwhelming 0.3% return on capital reflects management’s difficulties in finding profitable growth opportunities
At $10.59 per share, Utz trades at 11.9x forward P/E. Read our free research report to see why you should think twice about including UTZ in your portfolio.
One Stock to Watch:
agilon health (AGL)
Trailing 12-Month Free Cash Flow Margin: -1.4%
Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE:AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.
Why Are We Positive On AGL?
- Annual revenue growth of 37.2% over the past five years was outstanding, reflecting market share gains this cycle
- Average customer growth of 19.9% over the past two years demonstrates success in acquiring new clients that could increase their spending in the future
- Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability
agilon health is trading at $0.74 per share, or 0x forward price-to-sales. Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.
High-Quality Stocks for All Market Conditions
The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in 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 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 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.