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4 Must-Buy Profitable Stocks Using Net Income Ratio
Investors should look for companies that offer solid returns after meeting all operating and non-operating costs. Thus, it is a good idea to bet on a profitable company over a loss-making one.
Here, we have used the concept of accounting ratios to evaluate a company’s profitability. There are several profitability ratios, from which we have chosen the most successful and frequently used profitability metric to determine a company's bottom-line performance.
To that end, Option Care Health, Merchants Bancorp, Teekay Tankers and GigaCloud Technology Inc. have been selected as the top picks with a high net income ratio.
Net Income Ratio
The net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’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.
These few parameters have narrowed the universe of more than 7,685 stocks to only five.
Here are four of the five stocks that qualified for the screening:
Option Care Health provides infusion and home care management solutions. The 12-month net profit margin of OPCH is 6.2%.
Merchants Bancorp is a diversified bank holding company. The 12-month net profit margin of MBIN is 23.6%.
Teekay Tankers provides international marine transportation of crude oil. The 12-month net profit margin of TNK is 37.7%.
GigaCloud Technology pioneered global end-to-end B2B e-commerce solutions for large parcel merchandise. The 12-month net profit margin of GCT is 13.4%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Option Care Health, Merchants, Teekay Tankers and GigaCloud
For Immediate Release
Chicago, IL – May 9, 2024 – Stocks in this week’s article are Option Care Health (OPCH - Free Report) , Merchants Bancorp (MBIN - Free Report) , Teekay Tankers (TNK - Free Report) and GigaCloud Technology Inc. (GCT - Free Report) .
4 Must-Buy Profitable Stocks Using Net Income Ratio
Investors should look for companies that offer solid returns after meeting all operating and non-operating costs. Thus, it is a good idea to bet on a profitable company over a loss-making one.
Here, we have used the concept of accounting ratios to evaluate a company’s profitability. There are several profitability ratios, from which we have chosen the most successful and frequently used profitability metric to determine a company's bottom-line performance.
To that end, Option Care Health, Merchants Bancorp, Teekay Tankers and GigaCloud Technology Inc. have been selected as the top picks with a high net income ratio.
Net Income Ratio
The net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’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.
These few parameters have narrowed the universe of more than 7,685 stocks to only five.
Here are four of the five stocks that qualified for the screening:
Option Care Health provides infusion and home care management solutions. The 12-month net profit margin of OPCH is 6.2%.
Merchants Bancorp is a diversified bank holding company. The 12-month net profit margin of MBIN is 23.6%.
Teekay Tankers provides international marine transportation of crude oil. The 12-month net profit margin of TNK is 37.7%.
GigaCloud Technology pioneered global end-to-end B2B e-commerce solutions for large parcel merchandise. The 12-month net profit margin of GCT is 13.4%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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/2270226/4-must-buy-profitable-stocks-using-net-income-ratio
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.