For Immediate Release
Chicago, IL – January 31, 2022 – Stocks in this week’s article are Tesla (
TSLA Quick Quote TSLA - Free Report) , Schlumberger ( SLB Quick Quote SLB - Free Report) and Westlake Chemical ( WLK Quick Quote WLK - Free Report) . 3 Top-Ranked Efficient Stocks to Boost Your Portfolio
Efficiency level measures a company’s capability to transform available input into output and is often considered an important parameter for gauging a firm’s potential to make profits. But at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider popular efficiency ratios while selecting stocks. These are the efficiency ratios:
Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company’s potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio or the “accounts receivable turnover ratio” or “debtor’s turnover ratio” is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers. Inventory Turnover: The ratio of 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company’s ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that it is facing declining sales, which resulted in excess inventory. Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company’s ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers. Asset Utilization: This ratio indicates a company’s capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.
Here are the top three stocks that made it through the screen:
Tesla has evolved into a dynamic technology innovator. Tesla has transformed the EV market much the same way as Amazon changed the retail landscape and Netflix revolutionized entertainment. It delivered an average four-quarter earnings surprise of 33.3%. Schlumbergeris a leading oilfield services company that provides services to oil and gas explorers and producers across the world. Schlumberger pulled off an average four-quarter earnings surprise of 7.8%. Westlake Chemical is a vertically integrated international producer and supplier of petrochemicals, polymers and building products. Westlake Chemical utilizes most of its internally-produced basic chemicals to make higher value-added chemicals and building products. It delivered an average four-quarter earnings surprise of 17.8%. For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1858849/3-top-ranked-efficient-stocks-to-boost-your-portfolio 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
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Strong Stocks that Should Be in the News
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