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Zacks.com featured highlights: Ferrari N.V., Preferred Bank, Applied Optoelectronics, II-VI and Ebix

RACE PFBC AAOI IIVI EBIX

Trades from $3

For Immediate Release

Chicago, IL – March 21, 2017 - Stocks in this week’s article include Ferrari N.V. (NYSE: (RACE - Free Report) – Free Report ), Preferred Bank (NASDAQ: (PFBC - Free Report) – Free Report ), Applied Optoelectronics, Inc. (NASDAQ: (AAOI - Free Report) – Free Report ), II-VI Inc. (NASDAQ: (IIVI - Free Report) – Free Report ) and Ebix, Inc. (NASDAQ: (EBIX - Free Report) – Free Report ).

Screen of the Week of Zacks Investment Research:

5 Profitable Stocks Powered by High Net Income Ratio

Profitability analysis is generally used to measure a company’s ability to meet all its business-related costs and provide great returns to its investors. Although, a profitable company with weak fundamentals may fail to perform successfully, several studies have indicated that a profitable entity generally manages to offer satisfactory returns.

Here we have used the concept of accounting ratios to evaluate a company’s profitability. There are a variety of profitability ratios, from which we have chosen the most common and successful 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 revenue. Using net income ratio, one can determine a company’s effectiveness to pay for its operating and non-operating expenses from its revenue. A higher net income ratio usually implies a company’s ability to generate ample revenue and successfully manage all its business functions.

Screening Parameters

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: Only Zacks Rank #1 (Strong Buy) stocks are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off. You can see the complete list of today’s Zacks #1 Rank stocks here .

12-Month Trailing Sales and Net Income Growth Higher than X Industry: Stocks that possess higher sales and net income growth in the last 12 months showcase better financial performance.

12-Month Trailing Net Income Ratio Higher than X Industry: High net income ratio indicates a company’s solid profitability.

% Rating Strong Buy greater than 70%: This indicates that 70% of the analysts covering these stocks are optimistic.

Here are five of the six stocks that made it through the screen:

Ferrari N.V. (NYSE:(RACE - Free Report) – Free Report ) is engaged in designing, manufacturing and selling sports cars. It has an average four-quarter positive earnings surprise of 34.9%.

Preferred Bank (NASDAQ:(PFBC - Free Report) – Free Report ) is a major commercial bank in California focusing on the Chinese-American market. It has an average four-quarter positive earnings surprise of 5.1%.

Applied Optoelectronics, Inc. (NASDAQ:(AAOI - Free Report) – Free Report ) designs and develops advanced optical devices, packaged optical components, laser transmitters, etc. It has an average four-quarter positive earnings surprise of more than 100%.

II-VI Inc. (NASDAQ:(IIVI - Free Report) – Free Report ) designs, manufactures and markets optical and opto-electronic components, devices and materials for infrared, near-infrared, visible light, x-ray and gamma ray instrumentation. It has an average four-quarter positive earnings surprise of 59.2%.

Ebix, Inc. (NASDAQ:(EBIX - Free Report) – Free Report ) is one of the leading international suppliers of software and e-commerce solutions to the insurance industry. It has an average four-quarter positive earnings surprise of 14.4%.

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 .

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 .

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Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don’t wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111

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. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112

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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.