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Buy These 4 Stocks With Robust Net Profit Margins to Boost Returns
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Key Takeaways
BTSG, ARKO, SNEX and VIST stocks were screened for margins, EPS growth and bullish analyst sentiment.
BTSG, ARKO, SNEX and VIST have witnessed upward EPS estimate revisions recently.
All picks hold high Zacks Ranks and strong VGM Scores, supporting their upside potential.
Investors seek companies that consistently generate profits. One of the best metrics to measure profitability is the net profit margin. This metric highlights a company's ability to convert sales into actual profits, providing insights into operational efficiency and management quality. BrightSpring Health Services, Inc. (BTSG - Free Report) , ARKO Corporation (ARKO - Free Report) , StoneX Group Inc. (SNEX - Free Report) and Vista Energy, S.A.B. de C.V. (VIST - Free Report) boast solid net profit margins.
Net Profit Margin = Net profit/Sales * 100.
Net profit represents the amount retained after all expenses, including costs, interest, depreciation and taxes. A strong net profit margin indicates effective cost control and operational strength, which are crucial for rewarding stakeholders, and attracting investors and talented employees. A higher net profit margin compared to peers provides a 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, this metric varies across industries, making direct comparisons challenging. While it is vital for traditional industries, it might be less relevant for technology companies.
Differences in accounting practices, especially with regard to non-cash expenses like depreciation and stock-based compensation, further complicate comparisons. Additionally, companies that rely heavily on debt may show lower net profits due to high interest expenses, limiting the metric's effectiveness in evaluating 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.
Screening Parameters
Net Margin 12 months – Most Recent (%) greater than equal to 0: High net profit margin indicates solid profitability.
Percentage Change in EPS F(0)/(F-1) greater than equal to 0: It indicates earnings growth.
Average Broker Rating (1-5) equal to 1: A rating of #1 indicates brokers’ extreme bullishness on the stock.
Zacks Rank less than or equal to 2: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally perform better than their peers in all types of market environments.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here we discuss our four picks from the 13 stocks that qualified the screening:
BrightSpring Health Services provides complementary home and community-based pharmacy and health solutions. The stock sports a Zacks Rank #1 and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BrightSpring Health Services’ 2026 earnings has moved upward by 3 cents to $1.64 per share over the past seven days. BTSG outpaced the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, with the average surprise being 14.6%.
ARKO is a Fortune 500 company and one of the largest operators of convenience stores and wholesalers of fuel in the United States. The stock sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for ARKO’s 2026 earnings has been revised upward by 18.2% to 26 cents per share over the past 60 days. ARKO surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and missed it once, the average surprise being 43.23%.
StoneX Group provides financial services. Through its subsidiaries, the company offers execution, post-trade settlement, clearing and custody services. The stock sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for StoneX Group’s fiscal 2026 earnings has moved northward by 20 cents to $6.00 per share over the past seven days. SNEX beat the Zacks Consensus Estimate twice in the trailing four quarters and missed it on two occasions, with an average surprise being 9.47%.
Vista Energy is a leading exploration and production company with a strong footprint in Vaca Muerta and one of the largest shale oil and gas resources outside of North America. The stock currently sports a Zacks Rank of 1 and has a VGM Score of B.
The Zacks Consensus Estimate for Vista Energy’s 2026 earnings has been revised upward by 13.2% to $13.56 per share in the past 30 days. VIST underperformed the Zacks Consensus Estimate thrice in the trailing four quarters while beating the same once, the average surprise being -37.16%.
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Buy These 4 Stocks With Robust Net Profit Margins to Boost Returns
Key Takeaways
Investors seek companies that consistently generate profits. One of the best metrics to measure profitability is the net profit margin. This metric highlights a company's ability to convert sales into actual profits, providing insights into operational efficiency and management quality. BrightSpring Health Services, Inc. (BTSG - Free Report) , ARKO Corporation (ARKO - Free Report) , StoneX Group Inc. (SNEX - Free Report) and Vista Energy, S.A.B. de C.V. (VIST - Free Report) boast solid net profit margins.
Net Profit Margin = Net profit/Sales * 100.
Net profit represents the amount retained after all expenses, including costs, interest, depreciation and taxes. A strong net profit margin indicates effective cost control and operational strength, which are crucial for rewarding stakeholders, and attracting investors and talented employees. A higher net profit margin compared to peers provides a 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, this metric varies across industries, making direct comparisons challenging. While it is vital for traditional industries, it might be less relevant for technology companies.
Differences in accounting practices, especially with regard to non-cash expenses like depreciation and stock-based compensation, further complicate comparisons. Additionally, companies that rely heavily on debt may show lower net profits due to high interest expenses, limiting the metric's effectiveness in evaluating 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.
Screening Parameters
Net Margin 12 months – Most Recent (%) greater than equal to 0: High net profit margin indicates solid profitability.
Percentage Change in EPS F(0)/(F-1) greater than equal to 0: It indicates earnings growth.
Average Broker Rating (1-5) equal to 1: A rating of #1 indicates brokers’ extreme bullishness on the stock.
Zacks Rank less than or equal to 2: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally perform better than their peers in all types of market environments.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here we discuss our four picks from the 13 stocks that qualified the screening:
BrightSpring Health Services provides complementary home and community-based pharmacy and health solutions. The stock sports a Zacks Rank #1 and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BrightSpring Health Services’ 2026 earnings has moved upward by 3 cents to $1.64 per share over the past seven days. BTSG outpaced the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, with the average surprise being 14.6%.
ARKO is a Fortune 500 company and one of the largest operators of convenience stores and wholesalers of fuel in the United States. The stock sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for ARKO’s 2026 earnings has been revised upward by 18.2% to 26 cents per share over the past 60 days. ARKO surpassed the Zacks Consensus Estimate thrice in the trailing four quarters and missed it once, the average surprise being 43.23%.
StoneX Group provides financial services. Through its subsidiaries, the company offers execution, post-trade settlement, clearing and custody services. The stock sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for StoneX Group’s fiscal 2026 earnings has moved northward by 20 cents to $6.00 per share over the past seven days. SNEX beat the Zacks Consensus Estimate twice in the trailing four quarters and missed it on two occasions, with an average surprise being 9.47%.
Vista Energy is a leading exploration and production company with a strong footprint in Vaca Muerta and one of the largest shale oil and gas resources outside of North America. The stock currently sports a Zacks Rank of 1 and has a VGM Score of B.
The Zacks Consensus Estimate for Vista Energy’s 2026 earnings has been revised upward by 13.2% to $13.56 per share in the past 30 days. VIST underperformed the Zacks Consensus Estimate thrice in the trailing four quarters while beating the same once, the average surprise being -37.16%.