We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Top-Ranked Liquid Stocks to Boost Portfolio Returns in 2022
Investors seeking healthy returns can benefit by adding stocks with favorable liquidity levels to their portfolios. Liquidity levels are a good indicator of a company’s financial health.
Liquidity measures the company’s ability to meet short-term debt obligations by converting assets into liquid cash and equivalents.
One needs to be careful before adding such stocks to their investment portfolio. While a high liquidity level may indicate that the company is clearing its dues faster than its peers, it may also suggest that it is failing to utilize resources efficiently.
Therefore, it is advisable to consider a company’s efficiency level in addition to its liquidity for identifying potential winners. An efficient company with a favorable liquidity level may prove to be a lucrative addition to one’s portfolio.
Measures to Identify Liquid Stocks
Current Ratio: It measures current assets relative to current liabilities. This ratio is used for measuring 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 indicate that the company is in good financial shape. It may also suggest that the company 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 the "quick assets ratio" — reflects on 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, as it takes into account cash and cash equivalents as well as 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 point toward sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is desirable at all times but may not always represent a company’s financial condition.
Here are four of the eight stocks that qualified the screen:
Dublin, Ireland-based Alkermes is a fully-integrated global biopharmaceutical company that utilizes proprietary technologies to research, develop and commercialize (with partners and on its own) pharmaceutical products to address the unmet needs of patients diagnosed with cancer and serious mental ailments. Alkermes boasts a diverse product portfolio and has a promising pipeline of candidates targeting major central nervous system (CNS) disorders, including schizophrenia, depression, addiction and multiple sclerosis.
Alkermes proprietary products include Vivitrol (alcohol and opioid dependence) and Aristada (schizophrenia) among others. The Zacks Consensus Estimate for its 2021 earnings is pegged at 71 cents per share, unchanged in the past 60 days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 147%, on average.
Based in Austin, TX, Tesla is the market leader in battery-powered electric car sales in the United States, owning around 60% of the market share. The company’s flagship Model 3 accounts for about half of the U.S. EV market. Tesla, which garnered the reputation of a gold standard over the years, is now a bigger entity than what it started off since its IPO in 2010, with a market capitalization of almost double the combined value of the top two U.S. auto giants, General Motors and Ford.
The Zacks Consensus Estimate for 2021 earnings is pegged at $6.29 per share, up 5.2% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 25.4%, on average.
Headquartered in Charlotte, NC, Nucor Corp. is a leading producer of structural steel, steel bars, steel joists, steel deck and cold-finished bars in the United States. It also produces direct reduced iron (DRI) used in its steel mills. The company has 123 operating facilities, primarily in the United States and Canada. Most of its operating facilities and customers are located in North America.
The Zacks Consensus Estimate for 2021 earnings is pegged at $23.30 per share, up 0.6% in the past 60 days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 2.7%, on average.
Headquartered in San Mateo, CA, GoPro is one of the leading manufacturers of the world's most handy camera and enabler of some of the most immersive and engaging content. The company made its initial public offering in June 2014.
GoPro manufactures mountable and wearable capture devices such as action cameras and related accessories. Its core product is the HERO line of capture devices, which was initially launched in 2009. Some of the company’s notable products include HERO7 Silver, HERO7 Black, HERO8 Black waterproof cameras and MAX — a 360-degree waterproof camera.
The Zacks Consensus Estimate for 2021 earnings is pegged at 85 cents per share, up 1.2% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 90%, on average.
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/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks.com featured highlights include: Alkermes, Tesla, Nucor Corp. and GoPro
For Immediate Release
Chicago, IL – January 20, 2022 – Stocks in this week’s article are Alkermes (ALKS - Free Report) , Tesla (TSLA - Free Report) , Nucor Corp. (NUE - Free Report) and GoPro (GPRO - Free Report) .
4 Top-Ranked Liquid Stocks to Boost Portfolio Returns in 2022
Investors seeking healthy returns can benefit by adding stocks with favorable liquidity levels to their portfolios. Liquidity levels are a good indicator of a company’s financial health.
Liquidity measures the company’s ability to meet short-term debt obligations by converting assets into liquid cash and equivalents.
One needs to be careful before adding such stocks to their investment portfolio. While a high liquidity level may indicate that the company is clearing its dues faster than its peers, it may also suggest that it is failing to utilize resources efficiently.
Therefore, it is advisable to consider a company’s efficiency level in addition to its liquidity for identifying potential winners. An efficient company with a favorable liquidity level may prove to be a lucrative addition to one’s portfolio.
Measures to Identify Liquid Stocks
Current Ratio: It measures current assets relative to current liabilities. This ratio is used for measuring 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 indicate that the company is in good financial shape. It may also suggest that the company 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 the "quick assets ratio" — reflects on 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, as it takes into account cash and cash equivalents as well as 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 point toward sound financials, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is desirable at all times but may not always represent a company’s financial condition.
Here are four of the eight stocks that qualified the screen:
Dublin, Ireland-based Alkermes is a fully-integrated global biopharmaceutical company that utilizes proprietary technologies to research, develop and commercialize (with partners and on its own) pharmaceutical products to address the unmet needs of patients diagnosed with cancer and serious mental ailments. Alkermes boasts a diverse product portfolio and has a promising pipeline of candidates targeting major central nervous system (CNS) disorders, including schizophrenia, depression, addiction and multiple sclerosis.
Alkermes proprietary products include Vivitrol (alcohol and opioid dependence) and Aristada (schizophrenia) among others. The Zacks Consensus Estimate for its 2021 earnings is pegged at 71 cents per share, unchanged in the past 60 days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 147%, on average.
Based in Austin, TX, Tesla is the market leader in battery-powered electric car sales in the United States, owning around 60% of the market share. The company’s flagship Model 3 accounts for about half of the U.S. EV market. Tesla, which garnered the reputation of a gold standard over the years, is now a bigger entity than what it started off since its IPO in 2010, with a market capitalization of almost double the combined value of the top two U.S. auto giants, General Motors and Ford.
The Zacks Consensus Estimate for 2021 earnings is pegged at $6.29 per share, up 5.2% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 25.4%, on average.
Headquartered in Charlotte, NC, Nucor Corp. is a leading producer of structural steel, steel bars, steel joists, steel deck and cold-finished bars in the United States. It also produces direct reduced iron (DRI) used in its steel mills. The company has 123 operating facilities, primarily in the United States and Canada. Most of its operating facilities and customers are located in North America.
The Zacks Consensus Estimate for 2021 earnings is pegged at $23.30 per share, up 0.6% in the past 60 days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 2.7%, on average.
Headquartered in San Mateo, CA, GoPro is one of the leading manufacturers of the world's most handy camera and enabler of some of the most immersive and engaging content. The company made its initial public offering in June 2014.
GoPro manufactures mountable and wearable capture devices such as action cameras and related accessories. Its core product is the HERO line of capture devices, which was initially launched in 2009. Some of the company’s notable products include HERO7 Silver, HERO7 Black, HERO8 Black waterproof cameras and MAX — a 360-degree waterproof camera.
The Zacks Consensus Estimate for 2021 earnings is pegged at 85 cents per share, up 1.2% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 90%, on average.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1853860/4-top-ranked-liquid-stocks-to-boost-portfolio-returns-in-2022
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/performance for information about the performance numbers displayed in this press release.