For Immediate Release
Chicago, IL – April 26, 2022 – Stocks in this week’s article are Louisiana-Pacific Corp. (
LPX Quick Quote LPX - Free Report) , Buckle ( BKE Quick Quote BKE - Free Report) , Magnolia Oil & Gas ( MGY Quick Quote MGY - Free Report) and SeaWorld Entertainment ( SEAS Quick Quote SEAS - Free Report) . 4 Best-Performing Liquid Stocks for Robust Returns in 2022
Identifying stocks that offer healthy returns may sometimes be a challenge to investors.
To overcome this challenge, an investor may consider liquidity levels, which are considered a good gauge of a company's financial health.
Liquidity measures a company's capability to meet its short-term debt obligations. However, high liquidity may reflect a company's inefficiency in utilizing its assets properly. Thus, impressive liquidity positions and favorable efficiency levels imply a stock's solid financial health.
An investor may consider a company's efficiency level along with its liquidity to identify potential winners.
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 suggest 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" — indicates 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 considers cash and cash equivalents and 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 suggest 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 10 stocks that qualified the screen:
Based in Nashville, TN,
Louisiana-Pacific Corp. is a leading manufacturer of sustainable, quality engineered wood building materials, structural framing products as well as exterior siding for residential, industrial and light commercial construction. The company operates 20 modern, strategically located facilities in the United States and Canada, two facilities in Chile and a facility in Brazil. It also operates facilities through a joint venture.
The company's products are used primarily in new home construction, repair and remodeling and outdoor structures. The company is reaping benefits from solid demand from the U.S. residential market. Strategic business transformation, effective cash management and inorganic moves are likely to boost performance in the future. The Zacks Consensus Estimate for 2022 earnings is pegged at $13.02 per share, up 52.5% in the past 60 days. Louisiana-Pacific has a Growth Score of B and a trailing four-quarter earnings surprise of 13.3%, on average
Buckle is a well-known retailer that sells several brand names and private label casual apparel, including tops, denim and other casual bottoms, sportswear, outerwear, accessories and footwear. Buckle emphasizes personalized attention to its clients and offers individual customer services like free alterations, layaways and a loyalty program. The Zacks Consensus Estimate for its fiscal 2022 earnings is pegged at $5.25 per share, up 10.3% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 45%, on average.
Headquartered in Houston, TX,
Magnolia Oil & Gas is an independent upstream operator engaged in exploring, developing and producing natural gas, crude oil and natural gas liquids. The company is focused on the Eagle Ford Shale and Austin Chalk formations in South Texas. The Zacks Consensus Estimate for its 2022 earnings is pegged at $4.27 per share, up 52.5% in the past 60 days. Magnolia Oil & Gas has a Growth Score of B and a trailing four-quarter earnings surprise of 27.4%, on average.
Based in Orlando, FL,
SeaWorld Entertainment is a theme park and entertainment company which owns popular theme park brands, including SeaWorld, Busch Gardens and Sesame Place in the United States. The company recently reported fourth-quarter 2021 results. SeaWorld reported revenues of $370.8 million, up 24.4% from fourth-quarter 2019 levels. The Zacks Consensus Estimate for 2022 earnings is pegged at $4.15 per share, up 26.5% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 137.2%, on average.
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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/1906748/4-best-performing-liquid-stocks-for-robust-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
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Contact: Jim Giaquinto
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