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5 Best Profitable Stocks to Buy Using Net Income Ratio
Investors should use the concept of accounting ratios to assess a company’s profitability. After all, they always seek a profitable company over a loss-making one. They also look for companies that offer sturdy returns even after meeting all operating and non-operating costs.
There are various profitability ratios, from which we have chosen the most successful and frequently used profitability metric to determine a company's bottom-line performance.
To that end, Trip.com Group Ltd., Medpace, Centrus Energy, Suzano and NVIDIA have been selected as the top picks with a high net income ratio.
Net Income Ratio
Net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a company’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate ample revenues and successfully manage all business functions.
Here are five of the nine stocks that qualified for the screening:
Trip.com Group is a one-stop travel service company. The 12-month net profit margin of TCOM is 22.4%.
Medpace is a scientifically-driven, global, full-service clinical contract research organization. The 12-month net profit margin of MEDP is 15%.
Centrus Energy supplies enriched uranium fuel for commercial nuclear power plants. The 12-month net profit margin of LEU is 26.4%.
Suzano is a producer of eucalyptus pulp as well as paper producers. The 12-month net profit margin of SUZ is 38.4%.
NVIDIA is the worldwide leader in visual computing technologies. The 12-month net profit margin of NVDA is 48.9%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's 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.
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 Trip.com, Medpace, Centrus Energy, Suzano and NVIDIA
For Immediate Release
Chicago, IL – February 23, 2024 – Stocks in this week’s article are Trip.com Group Ltd. (TCOM - Free Report) , Medpace (MEDP - Free Report) , Centrus Energy (LEU - Free Report) , Suzano (SUZ - Free Report) and NVIDIA (NVDA - Free Report) .
5 Best Profitable Stocks to Buy Using Net Income Ratio
Investors should use the concept of accounting ratios to assess a company’s profitability. After all, they always seek a profitable company over a loss-making one. They also look for companies that offer sturdy returns even after meeting all operating and non-operating costs.
There are various profitability ratios, from which we have chosen the most successful and frequently used profitability metric to determine a company's bottom-line performance.
To that end, Trip.com Group Ltd., Medpace, Centrus Energy, Suzano and NVIDIA have been selected as the top picks with a high net income ratio.
Net Income Ratio
Net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a company’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate ample revenues and successfully manage all business functions.
Here are five of the nine stocks that qualified for the screening:
Trip.com Group is a one-stop travel service company. The 12-month net profit margin of TCOM is 22.4%.
Medpace is a scientifically-driven, global, full-service clinical contract research organization. The 12-month net profit margin of MEDP is 15%.
Centrus Energy supplies enriched uranium fuel for commercial nuclear power plants. The 12-month net profit margin of LEU is 26.4%.
Suzano is a producer of eucalyptus pulp as well as paper producers. The 12-month net profit margin of SUZ is 38.4%.
NVIDIA is the worldwide leader in visual computing technologies. The 12-month net profit margin of NVDA is 48.9%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's 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/2229855/5-best-profitable-stocks-to-buy-using-net-income-ratio
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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.