Back to top

Image: Bigstock

Zacks.com featured highlights include Vince, H World, Enova and Atlanticus

Read MoreHide Full Article

For Immediate Release

Chicago, IL – April 24, 2026 – Stocks in this week’s article are Vince Holding Corp. VNCE, H World Group Ltd. HTHT, Enova International, Inc. ENVA and Atlanticus Holdings Corp. ATLC.

Buy These 4 Stocks with Solid Net Profit Margins to Enhance Returns

Investors prefer to invest in businesses that reap profits on a regular basis. To gauge the extent of profits, there is no better metric than the net profit margin.

A higher net margin reflects a company’s efficiency in converting sales into actual profits. Vince Holding Corp., H World Group Ltd., Enova International, Inc. and Atlanticus Holdings Corp. boast solid net profit margins.

Net Profit Margin = Net profit/Sales * 100.

In simple terms, net profit is the amount a company retains after deducting all costs, interest, depreciation, taxes and other expenses. In fact, the net profit margin can turn out to be a potent point of reference to gauge the strength of a company’s operations and its cost-control measures.

Also, a higher net profit is essential for rewarding stakeholders. Further, strength in the metric not only attracts investors but also draws well-skilled employees who eventually enhance a business's value.

Moreover, a higher net profit margin compared with its peers provides the company with a competitive edge.

Pros and Cons

Net profit margin helps investors gain clarity on a company’s business model in terms of pricing policy, cost structure and manufacturing efficiency. Hence, a strong net profit margin is preferred by all classes of investors.

However, net profit margin as an investment criterion has its share of pitfalls. The metric varies widely from industry to industry. While net income is a key metric for investment measurement in traditional industries, it is not that important for technology companies.

In addition, the difference in accounting treatment of various items — especially non-cash expenses like depreciation and stock-based compensation — makes comparison a daunting task.

Furthermore, for companies preferring to grow with debt instead of equity funding, higher interest expenses usually weigh on net profit. In such cases, the measure is rendered ineffective while analyzing a company’s performance.

The Winning Strategy

A healthy net profit margin and solid EPS growth are the two most sought-after elements in a business model.

Apart from these, we have added a few criteria to ensure maximum returns from this strategy.

Here we discuss our four picks that qualified the screening:

Vince Holding is a New York-based global luxury apparel and accessories company. It specializes in modern, understated, everyday essentials for men and women, including cashmeres, silk blouses and leather products. The stock sports a Zacks Rank of 1 at present and has a VGM Score of A.

The Zacks Consensus Estimate for Vince Holding’s fiscal 2027 earnings has been revised upward by 100% to 26 cents per share in the past seven days. VNCE surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 647.21%.

H World Group is a China-based global hotel operator. It manages diverse brands ranging from economy (HanTing) to luxury (Steigenberger) and operates mainly in China, with international presence through H World International (formerly Deutsche Hospitality). It currently operates more than 12,800 hotels across 21 countries. The stock sports a Zacks Rank of 1 at present and has a VGM Score of B.

The Zacks Consensus Estimate for H World Group’s 2026 earnings has been revised upward by 19 cents to $2.71 per share in the past 60 days. HTHT beat the Zacks Consensus Estimate for earnings thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 8.12%.

Enova International is a prominent financial technology company that provides online financial services to non-prime consumers and small businesses. The stock carries a Zacks Rank of 2 at present and has a VGM Score of A.

The Zacks Consensus Estimate for Enova International’s 2026 earnings has remained unchanged at $15.78 per share in the past 60 days. ENVA surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.66%.

Atlanticus provides credit and related financial services and products. The company operates in Credit Cards, Investments in previously charged-off receivables, auto finance and internet micro-loans. It markets fee-based products and services, including life insurance, card registration, telecommunication products and services, memberships in preferred buying clubs, travel services and debt waiver programs. The stock carries a Zacks Rank of 2 at present and has a VGM Score of B.

The Zacks Consensus Estimate for Atlanticus’ 2026 earnings has been revised upward by 7.9% to $8.48 per share in the past 60 days. ATLC beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 11.17%.

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.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

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/2906240/buy-these-4-stocks-with-solid-net-profit-margins-to-enhance-returns

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/performance for information about the performance numbers displayed in this press release
 

Published in