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Intuit & 2 Other Strong Buy Profitable Stocks for Your Portfolio
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Key Takeaways
Intuit, Dave and Centrus Energy were selected for strong profitability based on net income ratio.
LEU leads with a 22.6% net profit margin, followed by INTU at 19.1% and DAVE at 13.8%.
All three picks also show above-industry sales and net income growth over the past 12 months.
Investors should prioritize profitable companies over loss-making ones to ensure solid returns after covering all costs. We have used accounting ratios to evaluate a company’s profitability. There are several profitability ratios, and we have chosen the most successful and commonly used profitability metric to assess a company’s bottom-line performance.
To that end, Intuit Inc. (INTU - Free Report) , Dave Inc. (DAVE - Free Report) and Centrus Energy Corp. (LEU - Free Report) have been selected as top picks due to their high net income ratios.
Net Income Ratio
The net income ratio provides an accurate measure of a company's profitability level. It shows the percentage of net income relative to total sales revenues. By analyzing the net income ratio, one can assess a firm’s effectiveness in addressing both operating and non-operating expenses from its revenues. A higher net income ratio typically indicates a company’s capability to generate substantial revenues and manage all business functions successfully.
Screening Parameters Using Research Wizard:
The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.
Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well.
Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company’s solid profitability.
Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy.
These few parameters have narrowed the universe of more than 7,685 stocks to only 14.
Here are three of the 14 stocks that qualified for the screening:
Intuit
Intuit offers financial management, compliance and marketing products and services in the United States. The 12-month net profit margin of Intuit is 19.1%.
Dave
Dave offers financial products and services via its platform in the United States. The 12-month net profit margin of DAVE is 13.8%.
Centrus Energy
Centrus Energy provides nuclear fuel components to the United States, Belgium, Japan, the Netherlands and globally. The 12-month net profit margin of LEU is 22.6%.
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.
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.
Image: Bigstock
Intuit & 2 Other Strong Buy Profitable Stocks for Your Portfolio
Key Takeaways
Investors should prioritize profitable companies over loss-making ones to ensure solid returns after covering all costs. We have used accounting ratios to evaluate a company’s profitability. There are several profitability ratios, and we have chosen the most successful and commonly used profitability metric to assess a company’s bottom-line performance.
To that end, Intuit Inc. (INTU - Free Report) , Dave Inc. (DAVE - Free Report) and Centrus Energy Corp. (LEU - Free Report) have been selected as top picks due to their high net income ratios.
Net Income Ratio
The net income ratio provides an accurate measure of a company's profitability level. It shows the percentage of net income relative to total sales revenues. By analyzing the net income ratio, one can assess a firm’s effectiveness in addressing both operating and non-operating expenses from its revenues. A higher net income ratio typically indicates a company’s capability to generate substantial revenues and manage all business functions successfully.
Screening Parameters Using Research Wizard:
The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.
Zacks Rank Equal to #1: Whether the market is good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well.
Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company’s solid profitability.
Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy.
These few parameters have narrowed the universe of more than 7,685 stocks to only 14.
Here are three of the 14 stocks that qualified for the screening:
Intuit
Intuit offers financial management, compliance and marketing products and services in the United States. The 12-month net profit margin of Intuit is 19.1%.
Dave
Dave offers financial products and services via its platform in the United States. The 12-month net profit margin of DAVE is 13.8%.
Centrus Energy
Centrus Energy provides nuclear fuel components to the United States, Belgium, Japan, the Netherlands and globally. The 12-month net profit margin of LEU is 22.6%.
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.
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.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.