Nasdaq
华尔街日报3 Unprofitable Stocks with Questionable Fundamentals
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 are three unprofitable companiesto avoid and some better opportunities instead.
Neogen (NEOG)
Trailing 12-Month GAAP Operating Margin: -122%
Founded in 1981 and operating at the intersection of food safety and animal health, Neogen (NASDAQ:NEOG) develops and manufactures diagnostic tests and related products to detect dangerous substances in food and pharmaceuticals for animal health.
Why Is NEOG Risky?
- Sales tumbled by 1.8% annually over the last two years, showing market trends are working against its favor during this cycle
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
- EBITDA losses may force it to accept punitive lending terms or high-cost debt
At $5.94 per share, Neogen trades at 18.3x forward P/E. Dive into our free research report to see why there are better opportunities than NEOG.
10x Genomics (TXG)
Trailing 12-Month GAAP Operating Margin: -14.2%
Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ:TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.
Why Are We Hesitant About TXG?
- Sales trends were unexciting over the last two years as its 4.2% annual growth was below the typical healthcare company
- Cash-burning history makes us doubt the long-term viability of its business model
- Negative returns on capital show management lost money while trying to expand the business
10x Genomics is trading at $18.22 per share, or 3.7x forward price-to-sales. If you’re considering TXG for your portfolio, see our FREE research report to learn more.
CoStar (CSGP)
Trailing 12-Month GAAP Operating Margin: -2.7%
With a research department that makes over 10,000 property updates daily to its 35-year-old database, CoStar Group (NASDAQ:CSGP) provides comprehensive real estate data, analytics, and online marketplaces for commercial and residential properties in the U.S. and U.K.
Why Do We Think Twice About CSGP?
- Incremental sales over the last five years were much less profitable as its earnings per share fell by 2.8% annually while its revenue grew
- Free cash flow margin shrank by 17.1 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive
- Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
CoStar’s stock price of $68.21 implies a valuation ratio of 56.5x forward P/E. To fully understand why you should be careful with CSGP, check out our full 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 Exlservice (+354% 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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