1 Cash-Burning Stock to Target This Week and 2 Facing Headwinds

Barchart·04/01/2026 05:02:16

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.

Negative cash flow can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. Keeping that in mind, here is one high-risk, high-reward company investing aggressively to carve out a leadership position and two to leave off your radar.

Two Stocks to Sell:

AAON (AAON)

Trailing 12-Month Free Cash Flow Margin: -13.2%

Backed by two million square feet of lab testing space, AAON (NASDAQ:AAON) makes heating, ventilation, and air conditioning equipment for different types of buildings.

Why Does AAON Worry Us?

1. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 3.7 percentage points
2. Earnings per share fell by 21.5% annually over the last two years while its revenue grew, showing its incremental sales were much less profitable
3. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 14.3 percentage points

AAON’s stock price of $82.77 implies a valuation ratio of 39.2x forward P/E. Read our free research report to see why you should think twice about including AAON in your portfolio.

ePlus (PLUS)

Trailing 12-Month Free Cash Flow Margin: -2.8%

Starting as a financing company in 1990 before evolving into a full-service technology provider, ePlus (NASDAQ:PLUS) provides comprehensive IT solutions, professional services, and financing options to help organizations optimize their technology infrastructure and supply chain processes.

Why Are We Cautious About PLUS?

1. Muted 4.4% annual revenue growth over the last two years shows its demand lagged behind its business services peers
2. Performance over the past two years shows its incremental sales were less profitable as its earnings per share were flat
3. Lacking free cash flow generation means it has few chances to reinvest for growth, repurchase shares, or distribute capital

ePlus is trading at $75.34 per share, or 14.1x forward P/E. Dive into our free research report to see why there are better opportunities than PLUS.

One Stock to Buy:

FTAI Aviation (FTAI)

Trailing 12-Month Free Cash Flow Margin: -41.4%

With a focus on the CFM56 engine that powers Boeing and Airbus’s planes, FTAI Aviation (NASDAQ:FTAI) sells, leases, maintains, and repairs aircraft engines.

Why Is FTAI a Top Pick?

1. Annual revenue growth of 46.3% over the past two years was outstanding, reflecting market share gains this cycle
2. Earnings per share grew by 43.8% annually over the last two years, massively outpacing its peers
3. Cash-burning tendencies have improved over the last five years, showing it could become financially independent one day

At $245.50 per share, FTAI Aviation trades at 31.3x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

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.

This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.