Companies that burn cash at a rapid pace can run into serious trouble if they fail to secure funding. Without a clear path to profitability, these businesses risk dilution, mounting debt, or even bankruptcy.

Just because a company is spending heavily doesn’t mean it’s on the right track, and StockStory is here to separate the winners from the losers. That said, here are two high-risk, high-reward companies with the potential to scale into market leaders and one to leave off your radar.

One Business Services Stock to Sell:

Insperity (NSP)

Trailing 12-Month Free Cash Flow Margin: -1.4%

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE: NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Why Are We Cautious About NSP?

1. 3.2% annual revenue growth over the last two years was slower than its business services peers
2. Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 13% annually
3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Insperity’s stock price of $54.69 implies a valuation ratio of 16.8x forward P/E. Dive into our free research report to see why there are better opportunities than NSP.

Two Business Services Stocks to Watch:

CECO Environmental (CECO)

Trailing 12-Month Free Cash Flow Margin: -1.7%

With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.

Why Is CECO a Good Business?

1. Annual revenue growth of 18.6% over the past two years was outstanding, reflecting market share gains this cycle
2. Projected revenue growth of 23% for the next 12 months is above its two-year trend, pointing to accelerating demand
3. Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient

CECO Environmental is trading at $48.09 per share, or 37.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.

Rumble (RUM)

Trailing 12-Month Free Cash Flow Margin: -60.6%

Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ: RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.

Why Does RUM Stand Out?

1. Annual revenue growth of 19% over the past two years was outstanding, reflecting market share gains this cycle
2. Forecasted revenue growth of 12.6% for the next 12 months indicates its momentum over the last two years is sustainable

At $7.75 per share, Rumble trades at 19.3x trailing 12-month price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - 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 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-micro-cap company Kadant (+351% 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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