1 Unprofitable Stock with Impressive Fundamentals and 2 We Find Risky

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.

A lack of profits can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. That said, 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:

Tenable (TENB)

Trailing 12-Month GAAP Operating Margin: -1.5%

Starting with the widely-used Nessus vulnerability scanner first released in 1998, Tenable (NASDAQ:TENB) provides exposure management solutions that help organizations identify, assess, and prioritize cybersecurity vulnerabilities across their IT infrastructure and cloud environments.

Why Are We Hesitant About TENB?

1. Products, pricing, or go-to-market strategy may need some adjustments as its 10.5% average billings growth over the last year was weak
2. Estimated sales growth of 7.5% for the next 12 months implies demand will slow from its two-year trend
3. Operating margin expanded by 3.2 percentage points over the last year as it scaled and became more efficient

At $29.80 per share, Tenable trades at 3.5x forward price-to-sales. To fully understand why you should be careful with TENB, check out our full research report (it’s free for active Edge members).

Array (ARRY)

Trailing 12-Month GAAP Operating Margin: -17.2%

Going public in October 2020, Array (NASDAQ:ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.

Why Do We Think ARRY Will Underperform?

1. Weak unit sales over the past two years suggest it might have to lower prices to accelerate growth
2. Earnings per share have contracted by 15.7% annually over the last two years, a headwind for returns as stock prices often echo long-term EPS performance
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Array is trading at $9.05 per share, or 11.9x forward P/E. If you’re considering ARRY for your portfolio, see our FREE research report to learn more.

One Stock to Buy:

monday.com (MNDY)

Trailing 12-Month GAAP Operating Margin: -1.8%

With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ:MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.

Why Should You Buy MNDY?

1. Ability to secure long-term commitments with customers is evident in its 30.4% ARR growth over the last year
2. Notable projected revenue growth of 23.6% for the next 12 months hints at market share gains
3. Superior software functionality and low servicing costs result in a best-in-class gross margin of 89.4%

monday.com’s stock price of $186.35 implies a valuation ratio of 7.3x forward price-to-sales. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

High-Quality Stocks for All Market Conditions

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out 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 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. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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