3 Unprofitable Stocks That Fall Short

Barchart·06/09/2026 03:36:17

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. That said, here are three unprofitable companiesthat don’t make the cut and some better opportunities instead.

Teladoc (TDOC)

Trailing 12-Month GAAP Operating Margin: -8.1%

Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor’s visits.

Why Is TDOC Not Exciting?

1. Flat sales over the last three years suggest it must innovate and find new ways to grow
2. Customer spending has dipped by 9% on average as it focused on growing its users
3. Demand will likely be weak over the next 12 months as Wall Street expects flat revenue

Teladoc’s stock price of $7.10 implies a valuation ratio of 5.3x forward EV/EBITDA. Read our free research report to see why you should think twice about including TDOC in your portfolio.

Dentsply Sirona (XRAY)

Trailing 12-Month GAAP Operating Margin: -14.1%

With roots dating back to 1877 when it introduced the first dental electric drill, Dentsply Sirona (NASDAQ:XRAY) manufactures and sells professional dental equipment, technologies, and consumable products used by dentists and specialists worldwide.

Why Is XRAY Risky?

1. Constant currency revenue growth has disappointed over the past two years and shows demand was soft
2. Incremental sales over the last five years were much less profitable as its earnings per share fell by 7.2% annually while its revenue grew
3. Negative returns on capital show that some of its growth strategies have backfired, and its decreasing returns suggest its historical profit centers are aging

At $10.47 per share, Dentsply Sirona trades at 6.8x forward P/E. To fully understand why you should be careful with XRAY, check out our full research report (it’s free).

Xerox (XRX)

Trailing 12-Month GAAP Operating Margin: -2%

Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ:XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.

Why Do We Steer Clear of XRX?

1. Muted 1.5% annual revenue growth over the last five years shows its demand lagged behind its business services peers
2. Diminishing returns on capital from an already low starting point show that neither management’s prior nor current bets are going as planned
3. 7× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly

Xerox is trading at $3.56 per share, or 0.1x forward price-to-sales. Read our free research report to see why you should think twice about including XRX in your portfolio.

Stocks We Like More

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating 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 Kadant (+351% five-year return). Find your next big winner with StockStory today.

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