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Intuit & 2 Other Profitable Stocks to Buy for 2H25
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Key Takeaways
Intuit, Dave, and Nova were screened for high profitability via net income ratio.
NVMI led with a 28.5% margin, followed by INTU at 19.1% and DAVE at 13.8%.
All three firms showed strong sales and income growth versus industry averages.
Investors should seek companies that provide strong returns after covering all operating and non-operating expenses. Therefore, it’s wise to invest in a profitable company rather than one that is losing money.
Here, we use the concept of accounting ratios to assess a company’s profitability. Among the various profitability ratios, we select the most effective and commonly used metric to evaluate a firm’s bottom-line performance.
To that end, Intuit Inc. (INTU - Free Report) , Dave Inc. (DAVE - Free Report) and Nova Ltd. (NVMI - Free Report) have been selected as top picks for the second half of the year due to their high net income ratios.
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.
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 11.
Here are three of the 11 stocks that qualified for the screening:
Intuit
Intuit offers a range of products and services related to financial management, compliance, and marketing within the United States. The 12-month net profit margin of INTU is 19.1%.
Dave
Dave offers a range of financial products and services via its financial services platform in the United States. The 12-month net profit margin of DAVE is 13.8%.
Nova
Nova is involved in the design, development, production and sale of process control systems used in the semiconductor manufacturing industry. Their operations extend across various countries, including Israel, Taiwan, the United States, China, Korea, and other international locations. The 12-month net profit margin of NVMI is 28.5%.
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 Profitable Stocks to Buy for 2H25
Key Takeaways
Investors should seek companies that provide strong returns after covering all operating and non-operating expenses. Therefore, it’s wise to invest in a profitable company rather than one that is losing money.
Here, we use the concept of accounting ratios to assess a company’s profitability. Among the various profitability ratios, we select the most effective and commonly used metric to evaluate a firm’s bottom-line performance.
To that end, Intuit Inc. (INTU - Free Report) , Dave Inc. (DAVE - Free Report) and Nova Ltd. (NVMI - Free Report) have been selected as top picks for the second half of the year due to their high net income ratios.
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.
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 11.
Here are three of the 11 stocks that qualified for the screening:
Intuit
Intuit offers a range of products and services related to financial management, compliance, and marketing within the United States. The 12-month net profit margin of INTU is 19.1%.
Dave
Dave offers a range of financial products and services via its financial services platform in the United States. The 12-month net profit margin of DAVE is 13.8%.
Nova
Nova is involved in the design, development, production and sale of process control systems used in the semiconductor manufacturing industry. Their operations extend across various countries, including Israel, Taiwan, the United States, China, Korea, and other international locations. The 12-month net profit margin of NVMI is 28.5%.
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.