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.
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. That said, here are two high-risk, high-reward companies with the potential to scale into market leaders and one to leave off your radar.
One Business Services Stock to Sell:
Insperity (NSP)
Trailing 12-Month Free Cash Flow Margin: -1.4%
Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE: NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.
Why Are We Cautious About NSP?
- 3.2% annual revenue growth over the last two years was slower than its business services peers
- Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 13% annually
- Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution
Insperity’s stock price of $54.69 implies a valuation ratio of 16.8x forward P/E. Dive into our free research report to see why there are better opportunities than NSP.
Two Business Services Stocks to Watch:
CECO Environmental (CECO)
Trailing 12-Month Free Cash Flow Margin: -1.7%
With roots dating back to 1869 and a focus on creating cleaner industrial operations, CECO Environmental (NASDAQ: CECO) provides technology and expertise that helps industrial companies reduce emissions, treat water, and improve energy efficiency across various sectors.
Why Is CECO a Good Business?
- Annual revenue growth of 18.6% over the past two years was outstanding, reflecting market share gains this cycle
- Projected revenue growth of 23% for the next 12 months is above its two-year trend, pointing to accelerating demand
- Adjusted operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
CECO Environmental is trading at $48.09 per share, or 37.9x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Rumble (RUM)
Trailing 12-Month Free Cash Flow Margin: -60.6%
Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ: RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.
Why Does RUM Stand Out?
- Annual revenue growth of 19% over the past two years was outstanding, reflecting market share gains this cycle
- Forecasted revenue growth of 12.6% for the next 12 months indicates its momentum over the last two years is sustainable
At $7.75 per share, Rumble trades at 19.3x trailing 12-month price-to-sales. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.
The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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-micro-cap company Kadant (+351% 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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