For Immediate Release
Chicago, IL – May 6, 2022 – Stocks in this week’s article are Xencor (
XNCR Quick Quote XNCR - Free Report) , Encore Wire ( WIRE Quick Quote WIRE - Free Report) and Silvergate Capital ( SI Quick Quote SI - Free Report) . 3 Best Profitable Stocks to Buy Using Net Income Ratios
Profitability analysis is the best tool to measure the ability of the company to offer sturdy returns to investors even after meeting all operating and non-operating costs. Profitability analysis identifies a profitable company over a loss-making one. Thus, investors always seek profitable companies.
Here, we have used the concept of accounting ratios to evaluate a company's profitability. There is 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.
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 in meeting 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 12 stocks that qualified the screening:
Xencor is a clinical-stage biopharmaceutical company. Xencor develops antibodies to treat autoimmune diseases, asthma and allergic diseases, and cancer. The 12-month net profit margin of XNCR is 30.04%. Encore Wire is a low-cost manufacturer of copper electrical building wire and cable. Encore Wire is a significant supplier of both residential wire for interior electrical wiring in homes, apartments and manufactured housing as well as building wire for electrical distribution in commercial and industrial buildings. The 12-month net profit margin of WIRE is 23.05%. Silvergate Capital is a bank holding company for Silvergate Bank. Silvergate Capital is based in La Jolla, United States. The 12-month net profit margin of SI is 45.57%.
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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/1916614/3-best-profitable-stocks-to-buy-using-net-income-ratio 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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