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Zacks.com featured highlights include GigaCloud Technology, J.Jill, Adtalem Global Education and Virco Manufacturing
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For Immediate Release
Chicago, IL – June 20, 2024 – Stocks in this week’s article are GigaCloud Technology Inc. (GCT - Free Report) , J.Jill, Inc. (JILL - Free Report) , Adtalem Global Education Inc. (ATGE - Free Report) and Virco Manufacturing Corp. (VIRC - Free Report) .
Solid Net Profit Margin Stocks to Buy for Better Returns
Investors seek companies that consistently generate profits, and one of the best metrics to measure profitability is the net profit margin. This metric highlights a company's ability to convert sales into actual profits, providing insights into operational efficiency and management quality. GigaCloud Technology Inc., J.Jill, Inc., Adtalem Global Education Inc. and Virco Manufacturing Corp. boast solid net profit margins.
Net Profit Margin = Net profit/Sales * 100.
Net profit represents the amount retained after all expenses, including costs, interest, depreciation, and taxes. A strong net profit margin indicates effective cost control and operational strength, which are crucial for rewarding stakeholders and attracting investors and talented employees. Moreover, a higher net profit margin compared to peers provides a company with a competitive edge.
Pros and Cons
Net profit margin helps investors gain clarity on a company's business model in terms of pricing policy, cost structure and manufacturing efficiency. Hence, a strong net profit margin is preferred by all classes of investors.
However, this metric varies across industries, making direct comparisons challenging. While it is vital for traditional industries, it might be less relevant for technology companies.
Differences in accounting practices, especially with regard to non-cash expenses like depreciation and stock-based compensation, further complicate comparisons. Additionally, companies that rely heavily on debt may show lower net profits due to high interest expenses, limiting the metric's effectiveness in evaluating performance.
The Winning Strategy
A healthy net profit margin and solid EPS growth are the two most sought-after elements in a business model.
Apart from these, we have added a few criteria to ensure maximum returns from this strategy.
Here we discuss our four picks from the 33 stocks that qualified the screen:
GigaCloud Technology is a pioneer of global end-to-end B2B e-commerce solutions for large parcel merchandise. The company's marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the United States, Asia and Europe, to execute cross-border transactions. Currently, the stock sports a Zacks Rank #1 and has a VGM Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GigaCloud Technology's 2024 earnings has been revised upward by 27 cents to $3.25 per share in the past 60 days. GCT surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 47.9%.
J.Jill operates as a specialty retailer of women's apparel. The company offers sweaters, tops, pants, dresses, shorts, skirts, sleepwear and accessories. It markets through retail stores, websites and catalogs. The stock sports a Zacks Rank of 1 at present and has a VGM Score of A.
The Zacks Consensus Estimate for J.Jill's fiscal 2025 earnings has been revised upward by 15 cents to $3.50 per share in the past seven days. JILL surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 617.6%.
Adtalem Global Education is a leading healthcare education provider and workforce solutions innovator. The institutions of the company offer a wide array of programs across medical and healthcare services. The stock sports a Zacks Rank #1 at present and has a VGM Score of A.
The Zacks Consensus Estimate of $4.90 per share for Adtalem Global Education's fiscal 2024 earnings has moved 26 cents north in the past 60 days. ATGE surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 18.8%.
Virco Manufacturing designs, produces, and distributes quality furniture for the contract and education markets worldwide. The stock sports a Zacks Rank of 1 at present and has a VGM Score of A.
The Zacks Consensus Estimate for Virco Manufacturing's fiscal 2025 earnings has been revised upward by 26 cents to $1.86 per share in the past 30 days. Virco Manufacturing surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 74.9%.
Get the rest of the 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. 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.
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 GigaCloud Technology, J.Jill, Adtalem Global Education and Virco Manufacturing
For Immediate Release
Chicago, IL – June 20, 2024 – Stocks in this week’s article are GigaCloud Technology Inc. (GCT - Free Report) , J.Jill, Inc. (JILL - Free Report) , Adtalem Global Education Inc. (ATGE - Free Report) and Virco Manufacturing Corp. (VIRC - Free Report) .
Solid Net Profit Margin Stocks to Buy for Better Returns
Investors seek companies that consistently generate profits, and one of the best metrics to measure profitability is the net profit margin. This metric highlights a company's ability to convert sales into actual profits, providing insights into operational efficiency and management quality. GigaCloud Technology Inc., J.Jill, Inc., Adtalem Global Education Inc. and Virco Manufacturing Corp. boast solid net profit margins.
Net Profit Margin = Net profit/Sales * 100.
Net profit represents the amount retained after all expenses, including costs, interest, depreciation, and taxes. A strong net profit margin indicates effective cost control and operational strength, which are crucial for rewarding stakeholders and attracting investors and talented employees. Moreover, a higher net profit margin compared to peers provides a company with a competitive edge.
Pros and Cons
Net profit margin helps investors gain clarity on a company's business model in terms of pricing policy, cost structure and manufacturing efficiency. Hence, a strong net profit margin is preferred by all classes of investors.
However, this metric varies across industries, making direct comparisons challenging. While it is vital for traditional industries, it might be less relevant for technology companies.
Differences in accounting practices, especially with regard to non-cash expenses like depreciation and stock-based compensation, further complicate comparisons. Additionally, companies that rely heavily on debt may show lower net profits due to high interest expenses, limiting the metric's effectiveness in evaluating performance.
The Winning Strategy
A healthy net profit margin and solid EPS growth are the two most sought-after elements in a business model.
Apart from these, we have added a few criteria to ensure maximum returns from this strategy.
Here we discuss our four picks from the 33 stocks that qualified the screen:
GigaCloud Technology is a pioneer of global end-to-end B2B e-commerce solutions for large parcel merchandise. The company's marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the United States, Asia and Europe, to execute cross-border transactions. Currently, the stock sports a Zacks Rank #1 and has a VGM Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GigaCloud Technology's 2024 earnings has been revised upward by 27 cents to $3.25 per share in the past 60 days. GCT surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 47.9%.
J.Jill operates as a specialty retailer of women's apparel. The company offers sweaters, tops, pants, dresses, shorts, skirts, sleepwear and accessories. It markets through retail stores, websites and catalogs. The stock sports a Zacks Rank of 1 at present and has a VGM Score of A.
The Zacks Consensus Estimate for J.Jill's fiscal 2025 earnings has been revised upward by 15 cents to $3.50 per share in the past seven days. JILL surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 617.6%.
Adtalem Global Education is a leading healthcare education provider and workforce solutions innovator. The institutions of the company offer a wide array of programs across medical and healthcare services. The stock sports a Zacks Rank #1 at present and has a VGM Score of A.
The Zacks Consensus Estimate of $4.90 per share for Adtalem Global Education's fiscal 2024 earnings has moved 26 cents north in the past 60 days. ATGE surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 18.8%.
Virco Manufacturing designs, produces, and distributes quality furniture for the contract and education markets worldwide. The stock sports a Zacks Rank of 1 at present and has a VGM Score of A.
The Zacks Consensus Estimate for Virco Manufacturing's fiscal 2025 earnings has been revised upward by 26 cents to $1.86 per share in the past 30 days. Virco Manufacturing surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 74.9%.
Get the rest of the 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. 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/2289624/4-solid-net-profit-margin-stocks-to-buy-for-better-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 >>.
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
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.