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Zacks.com featured highlights Cambium Networks, ExlService, ServiceNow and Keysight Technologies
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 26, 2023 – Stocks in this week’s article are Cambium Networks Corp. (CMBM - Free Report) , ExlService Holdings, Inc. (EXLS - Free Report) , ServiceNow, Inc. (NOW - Free Report) and Keysight Technologies, Inc. (KEYS - Free Report) .
Scoop Up These 4 Promising Interest Coverage Ratio Stocks
Given the current scenario, investors should gauge the changing market dynamics and accordingly chalk out a sturdy investment strategy. You can simply arrive at a decision to buy or sell a particular stock by looking at its sales and earnings numbers. But such a strategy does not always warrant superior returns when the market is facing myriad issues. A critical analysis of the company’s financial background is always required for a better investment decision.
Well, a company should be sound enough to meet its financial obligations. This can be judged with coverage ratios — the higher these are the more efficient an enterprise will be in meeting its financial obligations. Here we have discussed one such ratio called the interest coverage ratio.
Interest Coverage Ratio = Earnings before Interest & Taxes (EBIT) divided by Interest Expense.
Cambium Networks Corp., ExlService Holdings, Inc., ServiceNow, Inc. and Keysight Technologies, Inc. are four stocks with an impressive interest coverage ratio.
Why Interest Coverage Ratio?
The interest coverage ratio is used to determine how effectively a company can pay the interest charged on its debt.
Debt, which is crucial for most companies to finance operations, comes at a cost called interest. Interest expense has a direct bearing on the profits of a company. The company’s creditworthiness depends on how effectively it meets its interest obligations. Therefore, the interest coverage ratio is one of the important criteria to factor in before making any investment decision.
The interest coverage ratio suggests the number of times interest could be paid from earnings and also gauges the margin of safety a firm carries for paying interest.
An interest coverage ratio lower than 1.0 implies that the company is unable to fulfill its interest obligations and could default on repaying debt. A company that is capable of generating earnings well above its interest expense can withstand financial hardship. Definitely, one should also track the company’s past performance to determine whether the interest coverage ratio has improved or worsened over a period of time.
Here are the four picks out of the nine stocks that qualified the screening:
Cambium Networks Corp., a leading provider of wireless networking infrastructure solutions, carries a Zacks Rank #2 and a VGM Score of A. The expected EPS growth rate for three-five years is 16%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cambium Networks’ current financial year sales and EPS suggests growth of 13.6% and 27.7%, respectively, from the year-ago period. CMBM delivered an earnings surprise of 118.6% in the last reported quarter. The stock has declined 7.1% in the past year.
ExlService Holdings, a leading data analytics and digital operations and solutions company, carries a Zacks Rank #2 and has a VGM Score of B. The expected EPS growth rate for three-five years is 14.5%.
The Zacks Consensus Estimate for both ExlService Holdings’ current financial year sales and EPS suggests growth of 12.5% from the year-ago period. EXLS delivered an earnings surprise of 9.3% in the last reported quarter. The stock has rallied 18.7% in the past year.
ServiceNow, which provides enterprise cloud computing solutions, carries a Zacks Rank #2 and has a VGM Score of B. The expected EPS growth rate for three-five years is 28.3%.
The Zacks Consensus Estimate for ServiceNow’s current financial year sales and EPS suggests growth of 22.2% and 21.2%, respectively, from the year-ago period. ServiceNow has a trailing four-quarter earnings surprise of 6.9%, on average. The stock has risen 3.7% in the past year.
Keysight Technologies, which provides electronic design and test solutions to commercial communications, networking, aerospace, defense, automotive, energy, semiconductor, electronic, and education industries, carries a Zacks Rank #2 and a VGM Score of B. The expected EPS growth rate for three-five years is 8.2%.
The Zacks Consensus Estimate for Keysight Technologies’ current financial year sales and EPS suggests growth of 2.8% and 5%, respectively, from the year-ago period. Keysight Technologies has a trailing four-quarter earnings surprise of 9.7%, on average. The stock has advanced 3.8% in the past year.
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 backtest 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.
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.
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Zacks.com featured highlights Cambium Networks, ExlService, ServiceNow and Keysight Technologies
For Immediate Release
Chicago, IL – April 26, 2023 – Stocks in this week’s article are Cambium Networks Corp. (CMBM - Free Report) , ExlService Holdings, Inc. (EXLS - Free Report) , ServiceNow, Inc. (NOW - Free Report) and Keysight Technologies, Inc. (KEYS - Free Report) .
Scoop Up These 4 Promising Interest Coverage Ratio Stocks
Given the current scenario, investors should gauge the changing market dynamics and accordingly chalk out a sturdy investment strategy. You can simply arrive at a decision to buy or sell a particular stock by looking at its sales and earnings numbers. But such a strategy does not always warrant superior returns when the market is facing myriad issues. A critical analysis of the company’s financial background is always required for a better investment decision.
Well, a company should be sound enough to meet its financial obligations. This can be judged with coverage ratios — the higher these are the more efficient an enterprise will be in meeting its financial obligations. Here we have discussed one such ratio called the interest coverage ratio.
Interest Coverage Ratio = Earnings before Interest & Taxes (EBIT) divided by Interest Expense.
Cambium Networks Corp., ExlService Holdings, Inc., ServiceNow, Inc. and Keysight Technologies, Inc. are four stocks with an impressive interest coverage ratio.
Why Interest Coverage Ratio?
The interest coverage ratio is used to determine how effectively a company can pay the interest charged on its debt.
Debt, which is crucial for most companies to finance operations, comes at a cost called interest. Interest expense has a direct bearing on the profits of a company. The company’s creditworthiness depends on how effectively it meets its interest obligations. Therefore, the interest coverage ratio is one of the important criteria to factor in before making any investment decision.
The interest coverage ratio suggests the number of times interest could be paid from earnings and also gauges the margin of safety a firm carries for paying interest.
An interest coverage ratio lower than 1.0 implies that the company is unable to fulfill its interest obligations and could default on repaying debt. A company that is capable of generating earnings well above its interest expense can withstand financial hardship. Definitely, one should also track the company’s past performance to determine whether the interest coverage ratio has improved or worsened over a period of time.
Here are the four picks out of the nine stocks that qualified the screening:
Cambium Networks Corp., a leading provider of wireless networking infrastructure solutions, carries a Zacks Rank #2 and a VGM Score of A. The expected EPS growth rate for three-five years is 16%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cambium Networks’ current financial year sales and EPS suggests growth of 13.6% and 27.7%, respectively, from the year-ago period. CMBM delivered an earnings surprise of 118.6% in the last reported quarter. The stock has declined 7.1% in the past year.
ExlService Holdings, a leading data analytics and digital operations and solutions company, carries a Zacks Rank #2 and has a VGM Score of B. The expected EPS growth rate for three-five years is 14.5%.
The Zacks Consensus Estimate for both ExlService Holdings’ current financial year sales and EPS suggests growth of 12.5% from the year-ago period. EXLS delivered an earnings surprise of 9.3% in the last reported quarter. The stock has rallied 18.7% in the past year.
ServiceNow, which provides enterprise cloud computing solutions, carries a Zacks Rank #2 and has a VGM Score of B. The expected EPS growth rate for three-five years is 28.3%.
The Zacks Consensus Estimate for ServiceNow’s current financial year sales and EPS suggests growth of 22.2% and 21.2%, respectively, from the year-ago period. ServiceNow has a trailing four-quarter earnings surprise of 6.9%, on average. The stock has risen 3.7% in the past year.
Keysight Technologies, which provides electronic design and test solutions to commercial communications, networking, aerospace, defense, automotive, energy, semiconductor, electronic, and education industries, carries a Zacks Rank #2 and a VGM Score of B. The expected EPS growth rate for three-five years is 8.2%.
The Zacks Consensus Estimate for Keysight Technologies’ current financial year sales and EPS suggests growth of 2.8% and 5%, respectively, from the year-ago period. Keysight Technologies has a trailing four-quarter earnings surprise of 9.7%, on average. The stock has advanced 3.8% in the past year.
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 backtest 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/2084292/scoop-up-these-4-promising-interest-coverage-ratio-stocks
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 >>.
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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.
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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.