Rapid spending isn’t always a sign of progress. Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable.

Negative cash flow can lead to trouble, but StockStory helps you identify the businesses that stand a chance of making it through. That said, here is one high-risk, high-reward company with the potential to scale into a market leader and two to leave off your radar.

Two Stocks to Sell:

iHeartMedia (IHRT)

Trailing 12-Month Free Cash Flow Margin: -340%

Occasionally featuring celebrity hosts like Ryan Seacrest on its shows, iHeartMedia (NASDAQ: IHRT) is a leading multimedia company renowned for its extensive network of radio stations, digital platforms, and live events across the globe.

Why Do We Think IHRT Will Underperform?

1. 5.6% annual revenue growth over the last five years was slower than its consumer discretionary peers
2. Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
3. Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders

iHeartMedia’s stock price of $3.61 implies a valuation ratio of 7.6x forward EV-to-EBITDA. If you’re considering IHRT for your portfolio, see our FREE research report to learn more.

Myriad Genetics (MYGN)

Trailing 12-Month Free Cash Flow Margin: -1.7%

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 Do We Steer Clear of MYGN?

1. Annual revenue growth of 4.6% over the last two years was below our standards for the healthcare sector
2. Push for growth has led to negative returns on capital, signaling value destruction, and its falling returns suggest its earlier profit pools are drying up
3. Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results

Myriad Genetics is trading at $4.35 per share, or 82.6x forward P/E. Read our free research report to see why you should think twice about including MYGN in your portfolio.

One Stock to Buy:

SoFi (SOFI)

Trailing 12-Month Free Cash Flow Margin: -111%

Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ: SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.

Why Are We Backing SOFI?

1. Annual revenue growth of 31.6% over the last two years was superb and indicates its market share increased during this cycle
2. Incremental sales over the last two years have been highly profitable as its earnings per share increased by 148% annually, topping its revenue gains

At $16.25 per share, SoFi trades at 27x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.

High-Quality Stocks for All Market Conditions

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum 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-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.