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NVIDIA, Micron and Vertiv rank among 29 stocks with high net income ratios and strong growth metrics.
NVDA posts a 55.6% net margin and expects 54.9% earnings growth this year.
MU shows a 28.2% margin with 307.6% growth outlook, while VRT projects 46.4% earnings growth.
As March gets underway, investors should focus on companies that deliver solid returns after covering for operating and non-operating expenses. As a result, profitable businesses tend to be more appealing than those operating at a loss. To assess profitability, analysts rely on accounting ratios, most notably the net income ratio, which measures a company’s bottom-line performance.
With that in mind, NVIDIA Corporation (NVDA - Free Report) , Micron Technology, Inc. (MU - Free Report) and Vertiv Holdings Co (VRT - Free Report) stand out as the top profitable picks because of their high net income ratios and promising upside potential. These companies are also well-poised to benefit from the ongoing surge in excitement around artificial intelligence.
Net Income Ratio Explained
The net income ratio indicates a company's exact profitability level. 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 less than or equal to 2: Whether the market is good or bad, stocks with a Zacks Rank #1 (Strong Buy) or 2 (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 29.
Here are three of the 29 stocks that qualified for the screening:
NVIDIA
NVIDIA provides graphics, computing and networking solutions worldwide. The 12-month net profit margin of NVDA is 55.6%. The company’s expected earnings growth rate for the current year is 54.9%. NVIDIA has a Zacks Rank #2 (read more: NVIDIA vs. Broadcom: The Smarter AI Stock to Buy for March 2026).
Micron Technology
Micron Technology designs, manufactures, and sells memory and storage products worldwide. MU’s 12-month net profit margin is 28.2%. The company’s expected earnings growth rate for the current year is 307.6%. Micron has a Zacks Rank #1 (read more: Micron vs. Oracle: One AI Stock Is a Clear Buy Right Now)
Vertiv
Vertiv designs and services critical digital infrastructure solutions for data centers, networks, and industrial facilities worldwide. The 12-month net profit margin of VRT is 13%. The company’s expected earnings growth rate for the current year is 46.4%. Vertiv has a Zacks Rank #2.
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3 Best Profitable AI Stocks to Buy in March 2026
Key Takeaways
As March gets underway, investors should focus on companies that deliver solid returns after covering for operating and non-operating expenses. As a result, profitable businesses tend to be more appealing than those operating at a loss. To assess profitability, analysts rely on accounting ratios, most notably the net income ratio, which measures a company’s bottom-line performance.
With that in mind, NVIDIA Corporation (NVDA - Free Report) , Micron Technology, Inc. (MU - Free Report) and Vertiv Holdings Co (VRT - Free Report) stand out as the top profitable picks because of their high net income ratios and promising upside potential. These companies are also well-poised to benefit from the ongoing surge in excitement around artificial intelligence.
Net Income Ratio Explained
The net income ratio indicates a company's exact profitability level. 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 less than or equal to 2: Whether the market is good or bad, stocks with a Zacks Rank #1 (Strong Buy) or 2 (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 29.
Here are three of the 29 stocks that qualified for the screening:
NVIDIA
NVIDIA provides graphics, computing and networking solutions worldwide. The 12-month net profit margin of NVDA is 55.6%. The company’s expected earnings growth rate for the current year is 54.9%. NVIDIA has a Zacks Rank #2 (read more: NVIDIA vs. Broadcom: The Smarter AI Stock to Buy for March 2026).
Micron Technology
Micron Technology designs, manufactures, and sells memory and storage products worldwide. MU’s 12-month net profit margin is 28.2%. The company’s expected earnings growth rate for the current year is 307.6%. Micron has a Zacks Rank #1 (read more: Micron vs. Oracle: One AI Stock Is a Clear Buy Right Now)
Vertiv
Vertiv designs and services critical digital infrastructure solutions for data centers, networks, and industrial facilities worldwide. The 12-month net profit margin of VRT is 13%. The company’s expected earnings growth rate for the current year is 46.4%. Vertiv has a Zacks Rank #2.