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Zacks.com featured highlights include Chipotle Mexican Grill, Turkcell Iletisim Hizmetleri, Meta Platforms and Sea
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For Immediate Release
Chicago, IL – May 9, 2023 – Stocks in this week’s article are Chipotle Mexican Grill (CMG - Free Report) , Turkcell Iletisim Hizmetleri A.S (TKC - Free Report) , Meta Platforms (META - Free Report) and Sea Ltd. (SE - Free Report) .
4 Top-Performing Liquid Stock Picks to Power Your Portfolio
Creating a portfolio with favorable liquidity stocks is likely to favor investors seeking healthy returns.
Liquidity measures a company's capability to meet its short-term debt obligations. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns.
One needs to be cautious before investing in such stocks. High liquidity may indicate that the company is clearing its dues faster than its peers. However, it might also suggest that the company cannot utilize its assets competently.
Hence, investors may consider a company's efficiency level along with its liquidity for identifying potential winners.
Measures to Identify Liquid Stocks
Current Ratio: It measures current assets relative to current liabilities. The ratio gauges 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 suggest that the company is in good financial shape. It may also suggest that the firm 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 '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, considering cash and cash equivalents and 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 suggest sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is always desirable but may not always represent a company's financial condition.
Here are four of the seven stocks that qualified for the screen:
Chipotle Mexican Grill, with its subsidiaries, operates quick-casual and fresh Mexican food restaurant chains. The company reported impressive first-quarter 2023 results, owing to strong comparable restaurant sales growth and new restaurant openings.
Apart from its strong comparable restaurant sales growth, digital efforts, Chipotlane add-ons and menu innovation are other tailwinds. Strength in digital sales, rise in menu prices and higher restaurant-level operating margin have also been driving the company's performance.
The Zacks Consensus Estimate for CMG' 2023 earnings has been revised upward to $43.48 per share from $41.38 in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 4.7%, on average.
Turkcell Iletisim Hizmetleri A.S is one of the leading providers of mobile communications services in Turkey. In 2022, the company's customer base comprised 887K homes with end-to-end fiber. Total fiber home passes stood at 5.4 million. The company's net fiber additions stood at 234K subscribers for the full year.
The net additions growth was driven by higher penetration of the company's complementary and content-heavy TV+ service. The Zacks Consensus Estimate for its 2023 earnings is pegged at $1.11 per share, up 23.3% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 30.6%, on average.
Meta Platforms is benefiting from steady user growth, particularly Asia Pacific. Increased engagement in products like Instagram, WhatsApp, Messenger and Facebook is likely to drive digital ad revenues.
The company recently reported its first-quarter 2023 results, with revenues of $28.65 billion, up 2.6% year over year. The Rest of the World (RoW) revenues increased 10% on a year-over-year basis. The Asia-Pacific and the United States & Canada revenues increased 3.5% and 3% year over year, respectively.
Revenues from Family of Apps (includes Facebook, Instagram, Messenger, WhatsApp and other services) increased 4% year over year to $28.31 billion. The Zacks Consensus Estimate for 2023 earnings is pegged at $11.76 per share, up 21.2% in the past 60 days. META has a Growth Score of B and a trailing four-quarter earnings surprise of 15.5%, on average.
Sea Ltd. is an internet service provider company based in Singapore. It offers digital entertainment, e-commerce and digital financial services known as Garena, Shopee and AirPay. The company operates primarily in Indonesia, Taiwan, Vietnam, Thailand, Philippines, Malaysia and Singapore.
The Zacks Consensus Estimate for 2023 bottom line is pegged at $2.91 per share, up from 13 cents 60 days ago. SE has a Growth Score of B and a trailing four-quarter earnings surprise of 69.6%, on average.
Get the remaining stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin and easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in and see what gems come out.
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/performancefor information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Chipotle Mexican Grill, Turkcell Iletisim Hizmetleri, Meta Platforms and Sea
For Immediate Release
Chicago, IL – May 9, 2023 – Stocks in this week’s article are Chipotle Mexican Grill (CMG - Free Report) , Turkcell Iletisim Hizmetleri A.S (TKC - Free Report) , Meta Platforms (META - Free Report) and Sea Ltd. (SE - Free Report) .
4 Top-Performing Liquid Stock Picks to Power Your Portfolio
Creating a portfolio with favorable liquidity stocks is likely to favor investors seeking healthy returns.
Liquidity measures a company's capability to meet its short-term debt obligations. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns.
One needs to be cautious before investing in such stocks. High liquidity may indicate that the company is clearing its dues faster than its peers. However, it might also suggest that the company cannot utilize its assets competently.
Hence, investors may consider a company's efficiency level along with its liquidity for identifying potential winners.
Measures to Identify Liquid Stocks
Current Ratio: It measures current assets relative to current liabilities. The ratio gauges 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 suggest that the company is in good financial shape. It may also suggest that the firm 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 '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, considering cash and cash equivalents and 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 suggest sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is always desirable but may not always represent a company's financial condition.
Here are four of the seven stocks that qualified for the screen:
Chipotle Mexican Grill, with its subsidiaries, operates quick-casual and fresh Mexican food restaurant chains. The company reported impressive first-quarter 2023 results, owing to strong comparable restaurant sales growth and new restaurant openings.
Apart from its strong comparable restaurant sales growth, digital efforts, Chipotlane add-ons and menu innovation are other tailwinds. Strength in digital sales, rise in menu prices and higher restaurant-level operating margin have also been driving the company's performance.
The Zacks Consensus Estimate for CMG' 2023 earnings has been revised upward to $43.48 per share from $41.38 in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 4.7%, on average.
Turkcell Iletisim Hizmetleri A.S is one of the leading providers of mobile communications services in Turkey. In 2022, the company's customer base comprised 887K homes with end-to-end fiber. Total fiber home passes stood at 5.4 million. The company's net fiber additions stood at 234K subscribers for the full year.
The net additions growth was driven by higher penetration of the company's complementary and content-heavy TV+ service. The Zacks Consensus Estimate for its 2023 earnings is pegged at $1.11 per share, up 23.3% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 30.6%, on average.
Meta Platforms is benefiting from steady user growth, particularly Asia Pacific. Increased engagement in products like Instagram, WhatsApp, Messenger and Facebook is likely to drive digital ad revenues.
The company recently reported its first-quarter 2023 results, with revenues of $28.65 billion, up 2.6% year over year. The Rest of the World (RoW) revenues increased 10% on a year-over-year basis. The Asia-Pacific and the United States & Canada revenues increased 3.5% and 3% year over year, respectively.
Revenues from Family of Apps (includes Facebook, Instagram, Messenger, WhatsApp and other services) increased 4% year over year to $28.31 billion. The Zacks Consensus Estimate for 2023 earnings is pegged at $11.76 per share, up 21.2% in the past 60 days. META has a Growth Score of B and a trailing four-quarter earnings surprise of 15.5%, on average.
Sea Ltd. is an internet service provider company based in Singapore. It offers digital entertainment, e-commerce and digital financial services known as Garena, Shopee and AirPay. The company operates primarily in Indonesia, Taiwan, Vietnam, Thailand, Philippines, Malaysia and Singapore.
The Zacks Consensus Estimate for 2023 bottom line is pegged at $2.91 per share, up from 13 cents 60 days ago. SE has a Growth Score of B and a trailing four-quarter earnings surprise of 69.6%, on average.
Get the remaining stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin and easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2091464/4-top-performing-liquid-stocks-picks-to-power-your-portfolio
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.
Contact: Jim Giaquinto
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/performancefor information about the performance numbers displayed in this press release.