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Zacks.com featured highlights include: TopBuild, Generac, Turtle Beach Corp, PennyMac Financial Services and Flagstar Bancorp

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For Immediate Release

Chicago, IL – July 31, 2020 – Stocks in this week’s article are TopBuild Corp. (BLD - Free Report) , Generac Holdings Inc. (GNRC - Free Report) , Turtle Beach Corporation (HEAR - Free Report) , PennyMac Financial Services, Inc. (PFSI - Free Report) and Flagstar Bancorp, Inc. .

5 Stocks with High Net Income Ratios to Scoop Up Now

Profitability analysis is considered one of the best possible ways to assess the prospects of a company. This analysis is used to identify a profitable company from a loss-making one. In this context, it can be inferred that a profitable company generally has a high level of sales surplus, which will help it meet all operating and non-operating costs and still offer high returns.

In this context, it may be wise to invest in shares of a company with a high level of profitability as it normally ensures high returns. As a result, the simplest and most transparent way of checking a company’s profitability is by using accounting ratios. There are a variety of profitability ratios, from which we have selected the net income ratio here as it is the most useful and simplest profitability metric.

Net Income Ratio

There are a variety of profit ratios like gross income ratio, operating income ratio, pretax profit margin and net income ratio, which can be used to determine a company’s profit generating abilities. But net income ratio is widely accepted as the most conservative of the above-mentioned ratios.

Net income in simple words is total earnings a company makes after deducting all expenses from its sales revenue. Net income ratio or net profit margin is a ratio of a company’s net income and sales revenue. A high net income ratio shows that the company is able to effectively manage all business activities, including production, administration and selling.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1102335/5-stocks-with-high-net-income-ratio-to-scoop-up

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

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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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