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Zacks.com featured highlights include Royal Caribbean Cruises, Boston Scientific and Monolithic Power Systems
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For Immediate Release
Chicago, IL – October 8, 2024 – Stocks in this week’s article are Royal Caribbean Cruises Ltd. (RCL - Free Report) , Boston Scientific Corp. (BSX - Free Report) and Monolithic Power Systems, Inc. (MPWR - Free Report) .
3 Profitable S&P 500 Stocks for the Strongest Quarter of the Year
After a commendable run in the first nine months of 2024, the S&P 500 is poised to gain in the year’s final three months. The S&P 500 has risen 20.8% in the first three quarters of the year, and historically whenever the broader index has gained over 20%, it has, on average, risen 2.1% in the fourth quarter, per Dow Jones Market Data.
In the October-December quarter, the S&P 500’s median return was as high as 4.1%, and the index gained more than 77% of the time, added Dow Jones Market Data.
The Federal Reserve’s recent jumbo interest rate cut and signs of a strong labor market prompted investors to dial back recession fears and helped the S&P 500 eke out weekly gains. The S&P 500 ended the week positively amid Middle East tensions. Hence, investors should capitalize on the index’s upswing by investing in its profitable stocks rather than the unprofitable ones.
Profitable stocks offer solid returns after meeting all operating and non-operating expenses. Here, we have used the concept of accounting ratios to gauge a company’s profitability. We selected the most successful and commonly used profitability ratio to evaluate a company’s performance. To that end, Royal Caribbean Cruises Ltd., Boston Scientific Corp. and Monolithic Power Systems, Inc. have been selected as the top picks with a high net income ratio.
Net Income Ratio
The 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 firm’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.
These few parameters have narrowed the universe of more than 7,685 stocks to only 31.
Here are three of the 31 stocks that qualified for the screening:
Royal Caribbean Cruises
Royal Caribbean Cruises is a cruise company. The 12-month net profit margin of RCL is 16.3%.
The company’s expected earnings growth rate for the current year is 70.9%. Royal Caribbean Cruises currently has a Zacks Rank #2.
Boston Scientific
Boston Scientific manufactures medical devices for global use in interventional medical specialties. The 12-month net profit margin of BSX is 12%.
Monolithic Power Systems designs, develops and markets high-performance power solutions. The 12-month net profit margin of MPWR is 21.7%.
The company’s expected earnings growth rate for the current year is 17.1%. Monolithic Power Systems currently has a Zacks Rank #2.
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 include Royal Caribbean Cruises, Boston Scientific and Monolithic Power Systems
For Immediate Release
Chicago, IL – October 8, 2024 – Stocks in this week’s article are Royal Caribbean Cruises Ltd. (RCL - Free Report) , Boston Scientific Corp. (BSX - Free Report) and Monolithic Power Systems, Inc. (MPWR - Free Report) .
3 Profitable S&P 500 Stocks for the Strongest Quarter of the Year
After a commendable run in the first nine months of 2024, the S&P 500 is poised to gain in the year’s final three months. The S&P 500 has risen 20.8% in the first three quarters of the year, and historically whenever the broader index has gained over 20%, it has, on average, risen 2.1% in the fourth quarter, per Dow Jones Market Data.
In the October-December quarter, the S&P 500’s median return was as high as 4.1%, and the index gained more than 77% of the time, added Dow Jones Market Data.
The Federal Reserve’s recent jumbo interest rate cut and signs of a strong labor market prompted investors to dial back recession fears and helped the S&P 500 eke out weekly gains. The S&P 500 ended the week positively amid Middle East tensions. Hence, investors should capitalize on the index’s upswing by investing in its profitable stocks rather than the unprofitable ones.
Profitable stocks offer solid returns after meeting all operating and non-operating expenses. Here, we have used the concept of accounting ratios to gauge a company’s profitability. We selected the most successful and commonly used profitability ratio to evaluate a company’s performance. To that end, Royal Caribbean Cruises Ltd., Boston Scientific Corp. and Monolithic Power Systems, Inc. have been selected as the top picks with a high net income ratio.
Net Income Ratio
The 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 firm’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.
These few parameters have narrowed the universe of more than 7,685 stocks to only 31.
Here are three of the 31 stocks that qualified for the screening:
Royal Caribbean Cruises
Royal Caribbean Cruises is a cruise company. The 12-month net profit margin of RCL is 16.3%.
The company’s expected earnings growth rate for the current year is 70.9%. Royal Caribbean Cruises currently has a Zacks Rank #2.
Boston Scientific
Boston Scientific manufactures medical devices for global use in interventional medical specialties. The 12-month net profit margin of BSX is 12%.
The company’s expected earnings growth rate for the current year is 17.1%. Boston Scientific currently has a Zacks Rank #2 (read more: NVIDIA & 2 Other S&P 500 Stocks Show Strong Earnings Growth).
Monolithic Power Systems
Monolithic Power Systems designs, develops and markets high-performance power solutions. The 12-month net profit margin of MPWR is 21.7%.
The company’s expected earnings growth rate for the current year is 17.1%. Monolithic Power Systems currently has a Zacks Rank #2.
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/2347086/3-profitable-sp-500-stocks-for-the-best-quarter-of-the-year
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/performance for information about the performance numbers displayed in this press release.