Back to top

Image: Bigstock

Zacks.com featured highlights include Indivior, Ciena and Ultra Clean

Read MoreHide Full Article

For Immediate Release

Chicago, IL – March 31, 2026 – Stocks in this week’s article are Indivior Pharmaceuticals Inc. (INDV - Free Report) , Ciena (CIEN - Free Report) and Ultra Clean (UCTT - Free Report) .

3 Stocks with Strong Efficiency Metrics to Strengthen Your Portfolio

The efficiency ratio reflects a company’s overall financial health. It analyzes how efficiently a company uses its assets and liabilities internally.

However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider the popular efficiency ratios listed below while selecting stocks.

Indivior Pharmaceuticals Inc., Ciena and Ultra Clean have made it through the screen process:

Efficiency Ratios to be Considered

Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company’s potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio, or the “accounts receivable turnover ratio” or “debtor’s turnover ratio,” is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.

Asset Utilization: This ratio indicates a company’s capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.

Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company’s ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that the company is facing declining sales, which has resulted in excess inventory.

Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company’s ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.

The use of these few criteria narrowed down the universe of over 7,906 stocks to 14.

Here are the top three stocks that made it through the screen:

Indivior Pharmaceuticals

Indivior Pharmaceuticals operates as a specialty pharmaceutical company, which is engaged in discovering and developing medications and treatments for alcohol addiction, opioid overdose, cocaine intoxication and co-occurring conditions, such as schizophrenia. INDV has an average four-quarter earnings surprise of 74.5%.

Ciena

Ciena is a leading provider of optical networking equipment, software and services. CIEN has an average four-quarter earnings surprise of 11.6%.

Ultra Clean

Ultra Clean is a developer and supplier of critical subsystems for the semiconductor capital equipment, flat panel, solar and medical device industries. UCTT has an average four-quarter earnings surprise of 0.7%.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Click here to sign up for a free trial to the Research Wizard today.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2891666/3-stocks-with-strong-efficiency-metrics-to-strengthen-your-portfolio

Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Contact: Jim Giaquinto

Company: Zacks.com

Phone: 312-265-9268

Email: pr@zacks.com

Visit: https://www.zacks.com/

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

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/performancefor information about the performance numbers displayed in this press release.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in