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.

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 investing heavily to secure market share and two best left off your radar.

Two Stocks to Sell:

Opendoor (OPEN)

Trailing 12-Month GAAP Operating Margin: -6.2%

Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.

Why Do We Think OPEN Will Underperform?

1. Demand for its offerings was relatively low as its number of homes purchased has underwhelmed

2. Historically negative EPS raises concerns for risk-averse investors and makes its earnings potential harder to gauge

3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

Opendoor is trading at $0.76 per share, or 0.1x forward price-to-sales. To fully understand why you should be careful with OPEN, check out our full research report (it’s free) .

Myriad Genetics (MYGN)

Trailing 12-Month GAAP Operating Margin: -14.7%

Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ:MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.

Why Are We Out on MYGN?

1. Flat sales over the last five years suggest it must find different ways to grow during this cycle

2. Issuance of new shares over the last five years caused its earnings per share to fall by 34.9% annually

3. Push for growth has led to negative returns on capital, signaling value destruction

Myriad Genetics’s stock price of $7.41 implies a valuation ratio of 141.5x forward price-to-earnings. Check out our free in-depth research report to learn more about why MYGN doesn’t pass our bar .

One Stock to Buy:

Remitly (RELY)

Trailing 12-Month GAAP Operating Margin: -3.1%

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.

Why Is RELY a Top Pick?

1. Has the opportunity to boost monetization through new features and premium offerings as its active customers have grown by 39.9% annually over the last two years

2. Additional sales over the last three years increased its profitability as the 88.9% annual growth in its earnings per share outpaced its revenue

3. Free cash flow margin increased by 19.3 percentage points over the last few years, giving the company more capital to invest or return to shareholders