Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth.

Finding the right unprofitable companies is difficult, which is why we started StockStory - to help you navigate the market. Keeping that in mind, 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:

Commerce (CMRC)

Trailing 12-Month GAAP Operating Margin: -3.1%

As a founding member of the MACH Alliance advocating for modern tech standards, Commerce (NASDAQ: CMRC) provides a SaaS platform that enables businesses to build and manage online stores, connect with marketplaces, and integrate with point-of-sale systems.

Why Is CMRC Risky?

1. Customers had second thoughts about committing to its platform over the last year as its average billings growth of 2.4% underwhelmed
2. Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its two-year trend
3. Low free cash flow margin of 8.3% for the last year gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

At $4.70 per share, Commerce trades at 1x forward price-to-sales. Dive into our free research report to see why there are better opportunities than CMRC.

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 Should You Dump 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. Performance over the past five years was negatively impacted by new share issuances as its earnings per share fell by 18.8% annually while its revenue was flat
3. Cash-burning tendencies make us wonder if it can sustainably generate shareholder value

NN’s stock price of $1.26 implies a valuation ratio of 29.3x forward P/E. To fully understand why you should be careful with NNBR, check out our full research report (it’s free for active Edge members).

One Stock to Buy:

Zscaler (ZS)

Trailing 12-Month GAAP Operating Margin: -4.7%

Pioneering the "zero trust" approach that has fundamentally changed enterprise network security, Zscaler (NASDAQ: ZS) provides a cloud-based security platform that connects users, devices, and applications securely without traditional network-based security hardware.

Why Do We Love ZS?

1. Billings growth has averaged 26.3% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
2. Projected revenue growth of 21.6% for the next 12 months suggests its momentum from the last two years will persist
3. Strong free cash flow margin of 29.9% enables it to reinvest or return capital consistently

Zscaler is trading at $242.22 per share, or 11.2x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

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 5 Strong Momentum Stocks for this week. 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

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.