Rapid spending isn’t always a sign of progress. Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable.
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. Keeping that in mind, here is one high-risk, high-reward company with the potential to scale into a market leader and two that may struggle to stay afloat.
Two Stocks to Sell:
Getty Images (GETY)
Trailing 12-Month Free Cash Flow Margin: -8.5%
With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE:GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.
Why Are We Out on GETY?
- Flat sales over the last five years suggest it must find different ways to grow during this cycle
- Falling earnings per share over the last four years has some investors worried as stock prices ultimately follow EPS over the long term
- Free cash flow margin dropped by 22.1 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Getty Images is trading at $0.26 per share, or 0.1x trailing 12-month price-to-sales. Check out our free in-depth research report to learn more about why GETY doesn’t pass our bar.
Golar LNG (GLNG)
Trailing 12-Month Free Cash Flow Margin: -160%
Pioneering a way to monetize stranded gas reserves that would otherwise be uneconomical to develop, Golar LNG (NASDAQ:GLNG) converts ships into floating liquefied natural gas facilities that liquefy natural gas at offshore sites.
Why Does GLNG Worry Us?
- Muted 2.8% annual revenue growth over the last five years shows its demand lagged behind its energy upstream and integrated energy peers
- Cash burn makes us question whether it can achieve sustainable long-term growth
- Short cash runway increases the probability of a capital raise that dilutes existing shareholders
Golar LNG’s stock price of $52.70 implies a valuation ratio of 175.1x forward P/E. Dive into our free research report to see why there are better opportunities than GLNG.
One Stock to Watch:
Redwire (RDW)
Trailing 12-Month Free Cash Flow Margin: -23%
Based in Jacksonville, Florida, Redwire (NYSE:RDW) is a provider of systems and components used in space infrastructure.
Why Are We Positive on RDW?
- Impressive 20.8% annual revenue growth over the last two years indicates it’s winning market share this cycle
- Notable projected revenue growth of 20.1% for the next 12 months hints at market share gains
- Returns on capital are increasing as management’s prior bets are starting to bear fruit
At $10.86 per share, Redwire trades at 4.6x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.