For Immediate Release
Chicago, IL – June 5, 2023 – Stocks in this week’s article are Wynn Resorts (
WYNN Quick Quote WYNN - Free Report) , Turkcell Iletisim Hizmetleri ( TKC Quick Quote TKC - Free Report) , Green Brick Partners ( GRBK Quick Quote GRBK - Free Report) and Inspired Entertainment ( INSE Quick Quote INSE - Free Report) . 4 Must-Buy Efficient Stocks to Boost Your Portfolio Returns
Efficiency level measures a company’s capability to transform available input into output and is often considered an important parameter for gauging a company’s potential to make profits. A company with a favorable efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance.
However, 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 efficiency ratios are:
These efficiency ratios are:
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. 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. Inventory Turnover: The ratio of the 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 the company is facing declining sales, which has 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. Here are the top four stocks that made it through the screen: Wynn Resorts is a leading developer, owner and operator of casino resorts. The Wynn Resorts has an average four-quarter positive earnings surprise of 67.2%. Turkcell Iletisim Hizmetleri is the leading provider of mobile communications services in Turkey. Turkcell Iletisim Hizmetleri has an average four-quarter positive earnings surprise of nearly 66.7%. Green Brick Partners is involved in the land acquisition and development, entitlements, design, construction, marketing and sale of residential projects. Green Brick Partners has an average four-quarter positive earnings surprise of 44.2%. Inspired Entertainment is a games technology company. Inspired Entertainment has an average four-quarter positive earnings surprise of 28.0%.
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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/2103026/4-must-buy-efficient-stocks-to-boost-your-portfolio-returns 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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