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.

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. Keeping that in mind, here is one unprofitable company investing heavily to secure market share and two that may never reach the Promised Land.

Two Stocks to Sell:

Repligen (RGEN)

Trailing 12-Month GAAP Operating Margin: -5%

With over 13 strategic acquisitions since 2012 to build its comprehensive bioprocessing portfolio, Repligen (NASDAQ: RGEN) develops and manufactures specialized technologies that improve the efficiency and flexibility of biological drug manufacturing processes.

Why Do We Steer Clear of RGEN?

1. Customers postponed purchases of its products and services this cycle as its revenue declined by 7.5% annually over the last two years
2. Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth
3. Efficiency has decreased over the last five years as its adjusted operating margin fell by 14.8 percentage points

Repligen is trading at $131.68 per share, or 71.4x forward P/E. Check out our free in-depth research report to learn more about why RGEN doesn’t pass our bar.

WEBTOON (WBTN)

Trailing 12-Month GAAP Operating Margin: -10.5%

Pioneering a vertical-scrolling format optimized for mobile devices, WEBTOON Entertainment (NASDAQ: WBTN) operates a global platform where creators publish serialized web-comics and web-novels that users can read in bite-sized episodes.

Why Are We Cautious About WBTN?

1. Number of monthly active users has disappointed over the past two years, indicating weak demand for its offerings
2. Historically negative EPS raises concerns for risk-averse investors and makes its earnings potential harder to gauge
3. Low free cash flow margin of -0.8% for the last three years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders

WEBTOON’s stock price of $8.82 implies a valuation ratio of 20.5x forward EV-to-EBITDA. Read our free research report to see why you should think twice about including WBTN in your portfolio.

One Stock to Buy:

Sarepta Therapeutics (SRPT)

Trailing 12-Month GAAP Operating Margin: -5.2%

Pioneering treatments for a devastating childhood muscle-wasting disease that primarily affects boys, Sarepta Therapeutics (NASDAQ: SRPT) develops and commercializes RNA-targeted therapies and gene therapies for rare genetic disorders, primarily Duchenne muscular dystrophy.

Why Will SRPT Outperform?

1. Annual revenue growth of 51.3% over the last two years was superb and indicates its market share increased during this cycle
2. Earnings per share have massively outperformed its peers over the last five years, increasing by 38.8% annually
3. Cash burn has become less severe over the last five years, showing the company is making some progress toward financial sustainability

At $40.01 per share, Sarepta Therapeutics trades at 3.9x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking 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 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 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.