For Immediate Release
Chicago, IL – April 5, 2022 – Stocks in this week’s article are MP Materials (
MP Quick Quote MP - Free Report) , NVIDIA ( NVDA Quick Quote NVDA - Free Report) , and LouisianaPacific ( LPX Quick Quote LPX - Free Report) 3 Top Profitable Stocks to Buy Using Net Income Ratios
Astute investors always seek a profitable company over a loss-making one. Thus, they look for companies that offer sturdy returns to investors even after meeting all operating and non-operating costs. Here, we have used the concept of accounting ratios to evaluate a company's profitability. There are a variety of profitability ratios, from which we have chosen the most successful and frequently used profitability metric to determine the bottom-line performance of a company.
To that end,
MP Materials , NVIDIA, and LouisianaPacific have been selected as the top picks with a high net income ratio. Net Income Ratio
Net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using net income ratio, one can determine a company's effectiveness to meet 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.
Here are three of the 17 stocks that qualified the screening:
MP Materials is the producer of rare earth materials, principally in the Western Hemisphere. MP Materials owns and operates in Mountain Pass primarily. The 12-month net profit margin of MP is 40.7%. NVIDIA is the worldwide leader in graphics processors and media communications devices. The NVIDIA accelerated computing platform gives modern data centers the power to accelerate artificial intelligence and high-performance computing workloads. The 12-month net profit margin of NVDA is 36.2%. LouisianaPacific manufactures building materials and engineered wood products in the United States, Canada, Chile and Brazil. LouisianaPacific's products are used by homebuilders and light commercial builders. The 12-month net profit margin of LPX is 30.2%.
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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/1892094/3-top-profitable-stocks-to-buy-using-net-income-ratio?art_rec=quote-stock_overview-zacks_news-ID01-txt-1892094 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.
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Contact: Jim Giaquinto
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