3 Unprofitable Stocks That Fall Short

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.

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 are three unprofitable companiesto avoid and some better opportunities instead.

Icahn Enterprises (IEP)

Trailing 12-Month GAAP Operating Margin: -2.1%

Founded in 1987, Icahn Enterprises (NASDAQ: IEP) is a diversified holding company primarily engaged in investment and asset management across various sectors.

Why Is IEP Not Exciting?

1. Annual sales declines of 9.6% for the past two years show its products and services struggled to connect with the market during this cycle
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. High net-debt-to-EBITDA ratio of 8× could force the company to raise capital at unfavorable terms if market conditions deteriorate

Icahn Enterprises is trading at $7.96 per share, or 0.5x forward price-to-sales. To fully understand why you should be careful with IEP, check out our full research report (it’s free).

NN (NNBR)

Trailing 12-Month GAAP Operating Margin: -4.8%

Formerly known as Nuturn, NN (NASDAQ:NNBR) provides metal components, bearings, and plastic and rubber components to the automotive, aerospace, medical, and industrial sectors.

Why Do We Steer Clear of NNBR?

1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 7.4% annually over the last two years
2. Issuance of new shares over the last five years caused its earnings per share to fall by 18.8% annually
3. Cash burn makes us question whether it can achieve sustainable long-term growth

NN’s stock price of $1.67 implies a valuation ratio of 26x forward P/E. Dive into our free research report to see why there are better opportunities than NNBR.

EVgo (EVGO)

Trailing 12-Month GAAP Operating Margin: -40%

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 Are We Wary of EVGO?

1. Suboptimal cost structure is highlighted by its history of operating margin losses
2. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $2.82 per share, EVgo trades at 10.4x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including EVGO in your portfolio.

Stocks We Like More

If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.

Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. 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-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.