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Image: Bigstock featured highlights include Option Care Health, Merchants, Teekay Tankers and GigaCloud

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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%.

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Contact: Jim Giaquinto


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