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Zacks.com featured highlights include: Packaging Corp. of America, Louisiana-Pacific Corp., Houlihan Lokey, and Equinor ASA
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For Immediate Release
Chicago, IL – February 4, 2022 – Stocks in this week’s article are Packaging Corp. of America (PKG - Free Report) , Louisiana-Pacific Corp. (LPX - Free Report) , Houlihan Lokey (HLI - Free Report) , and Equinor ASA (EQNR - Free Report) .
4 Promising Liquid Stocks to Snap Up for Higher Returns
A company with strong liquidity has the potential to provide impressive returns as liquidity supports its business growth.
Liquidity indicates a company’s ability to clear debt obligations by converting its assets into liquid cash and equivalents. However, investors should be careful about investing in a stock with high liquidity level as it may also imply that the company is failing to utilize its assets competently.
Therefore, it is advisable to consider a company’s efficiency level in addition to its liquidity for identifying potential winners. An efficient company with a favorable liquidity level may prove to be a lucrative addition to one’s portfolio.
Measures to Identify Liquid Stocks
Current Ratio: It measures current assets relative to current liabilities. This ratio is used for measuring a company’s potential to meet short- and long-term debt obligations. A current ratio — also known as the working capital ratio — below 1 indicates that the company has more liabilities than assets. However, a high current ratio does not always indicate that the company is in good financial shape. It may also suggest that the company failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.
Quick Ratio: Unlike the current ratio, the quick ratio — also called the “acid-test ratio" or the "quick assets ratio" — indicates a company’s ability to pay short-term obligations. It considers inventory excluding the current assets relative to current liabilities. Like the current ratio, a quick ratio of more than 1 is desirable.
Cash Ratio: This is the most conservative ratio among the three, as it takes into account cash and cash equivalents as well as invested funds relative to current liabilities. It measures a company’s ability to meet current debt obligations using the most liquid assets. Though a cash ratio of more than 1 may point toward sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is desirable at all times but may not always represent a company’s financial condition.
Here are four of the seven stocks that qualified the screen:
Headquartered at Lake Forest, IL, Packaging Corp. of America is the third-largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. The company operates eight mills and 90 corrugated products manufacturing plants.
Packaging Corp. continues to benefit from robust packaging demand backed by e-commerce and rising requirements for the packaging of food, beverages and medicines. The Zacks Consensus Estimate for its 2022 earnings is pegged at $10.47 per share, up 11.9% in the past 60 days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 22.8%, on average.
Based in Nashville, TN, Louisiana-Pacific Corp. is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction. Currently, the company operates 20 modern, strategically located facilities in the United States and Canada, two facilities in Chile and one facility in Brazil. It also operates facilities through a joint venture.
The company’s products are used primarily in new home construction, repair as well as remodeling and outdoor structures. The company is reaping benefits from solid demand from the U.S. residential market. Also, strategic business transformation, effective cash management and inorganic moves are likely to boost performance in the future.
The Zacks Consensus Estimate for 2021 earnings is pegged at $13.54 per share, up 1% in the past 60 days. Louisiana-Pacific has a Growth Score of A and a trailing four-quarter earnings surprise of 10.5%, on average.
Headquartered in Los Angeles, CA, Houlihan Lokey is a prominent independent investment bank that offers capital markets, mergers and acquisitions, financial restructurings and financial and valuation advisory services to clients like corporations, financial sponsors and government agencies across the globe.
Houlihan Lokey recently concluded the acquisition of GCA Corporation. The acquisition will help the company to boost its M&A advisory services and expand its presence in the Asia-Pacific region.
The Zacks Consensus Estimate for fiscal 2022 earnings is pegged at $6.92 per share, up 9.5% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 39.5%, on average.
Norway-based Equinor ASA is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. In Europe, the company is the second-largest supplier of natural gas. Equinor is also a leading seller of crude oil.
Over the years, the company has developed its expertise to expand upstream operations outside of conventional offshore resources to the prolific shale oil and gas plays. To combat climate change, the integrated energy company is investing actively in renewable energy projects, comprising power generation from solar and wind energy.
The Zacks Consensus Estimate for 2021 earnings is pegged at $3.28 per share, up 5.8% in the past 60 days. The company has a Growth Score of A.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include: Packaging Corp. of America, Louisiana-Pacific Corp., Houlihan Lokey, and Equinor ASA
For Immediate Release
Chicago, IL – February 4, 2022 – Stocks in this week’s article are Packaging Corp. of America (PKG - Free Report) , Louisiana-Pacific Corp. (LPX - Free Report) , Houlihan Lokey (HLI - Free Report) , and Equinor ASA (EQNR - Free Report) .
4 Promising Liquid Stocks to Snap Up for Higher Returns
A company with strong liquidity has the potential to provide impressive returns as liquidity supports its business growth.
Liquidity indicates a company’s ability to clear debt obligations by converting its assets into liquid cash and equivalents. However, investors should be careful about investing in a stock with high liquidity level as it may also imply that the company is failing to utilize its assets competently.
Therefore, it is advisable to consider a company’s efficiency level in addition to its liquidity for identifying potential winners. An efficient company with a favorable liquidity level may prove to be a lucrative addition to one’s portfolio.
Measures to Identify Liquid Stocks
Current Ratio: It measures current assets relative to current liabilities. This ratio is used for measuring a company’s potential to meet short- and long-term debt obligations. A current ratio — also known as the working capital ratio — below 1 indicates that the company has more liabilities than assets. However, a high current ratio does not always indicate that the company is in good financial shape. It may also suggest that the company failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.
Quick Ratio: Unlike the current ratio, the quick ratio — also called the “acid-test ratio" or the "quick assets ratio" — indicates a company’s ability to pay short-term obligations. It considers inventory excluding the current assets relative to current liabilities. Like the current ratio, a quick ratio of more than 1 is desirable.
Cash Ratio: This is the most conservative ratio among the three, as it takes into account cash and cash equivalents as well as invested funds relative to current liabilities. It measures a company’s ability to meet current debt obligations using the most liquid assets. Though a cash ratio of more than 1 may point toward sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is desirable at all times but may not always represent a company’s financial condition.
Here are four of the seven stocks that qualified the screen:
Headquartered at Lake Forest, IL, Packaging Corp. of America is the third-largest producer of containerboard products and a leading producer of uncoated freesheet paper in North America. The company operates eight mills and 90 corrugated products manufacturing plants.
Packaging Corp. continues to benefit from robust packaging demand backed by e-commerce and rising requirements for the packaging of food, beverages and medicines. The Zacks Consensus Estimate for its 2022 earnings is pegged at $10.47 per share, up 11.9% in the past 60 days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 22.8%, on average.
Based in Nashville, TN, Louisiana-Pacific Corp. is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for use in residential, industrial and light commercial construction. Currently, the company operates 20 modern, strategically located facilities in the United States and Canada, two facilities in Chile and one facility in Brazil. It also operates facilities through a joint venture.
The company’s products are used primarily in new home construction, repair as well as remodeling and outdoor structures. The company is reaping benefits from solid demand from the U.S. residential market. Also, strategic business transformation, effective cash management and inorganic moves are likely to boost performance in the future.
The Zacks Consensus Estimate for 2021 earnings is pegged at $13.54 per share, up 1% in the past 60 days. Louisiana-Pacific has a Growth Score of A and a trailing four-quarter earnings surprise of 10.5%, on average.
Headquartered in Los Angeles, CA, Houlihan Lokey is a prominent independent investment bank that offers capital markets, mergers and acquisitions, financial restructurings and financial and valuation advisory services to clients like corporations, financial sponsors and government agencies across the globe.
Houlihan Lokey recently concluded the acquisition of GCA Corporation. The acquisition will help the company to boost its M&A advisory services and expand its presence in the Asia-Pacific region.
The Zacks Consensus Estimate for fiscal 2022 earnings is pegged at $6.92 per share, up 9.5% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 39.5%, on average.
Norway-based Equinor ASA is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. In Europe, the company is the second-largest supplier of natural gas. Equinor is also a leading seller of crude oil.
Over the years, the company has developed its expertise to expand upstream operations outside of conventional offshore resources to the prolific shale oil and gas plays. To combat climate change, the integrated energy company is investing actively in renewable energy projects, comprising power generation from solar and wind energy.
The Zacks Consensus Estimate for 2021 earnings is pegged at $3.28 per share, up 5.8% in the past 60 days. The company has a Growth Score of A.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1861990/4-promising-liquid-stocks-to-snap-up-for-higher-returns
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Company: Zacks.com
Phone: 312-265-9268
Email: pr@zacks.com
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.