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NVIDIA and Micron made a 33-stock screen focused on profitability and growth metrics.
NVDA posted a trailing 12-month net profit margin of 55.6%, signaling strong profitability.
MU recorded a trailing 12-month net profit margin of 41.5% in the screening process.
As the stock market continues to fluctuate, investors should avoid panic and instead prefer investing in companies that deliver solid returns after covering both operating and non-operating costs.
Consistently profitable companies are often viewed as more appealing than those running at a loss. To evaluate profitability, investors rely on accounting ratios that measure a company’s bottom-line performance.
With that in mind, NVIDIA Corporation (NVDA - Free Report) and Micron Technology, Inc. (MU - Free Report) stand out as the top profitable stock picks, supported by robust net income ratios and substantial upside potential. NVIDIA and Micron’s shares have soared 65.5% and 592.4%, respectively, over the past year.
Net Income Ratio Explained for Investors
The net income ratio indicates a company’s exact level of profitability. It reflects the percentage of net income relative to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in covering operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
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 33.
Here are two of the 33 stocks that qualified for the screening:
View the Zacks #1 Rank List
Image: Bigstock
Profitable Picks: Why NVIDIA & Micron Stand Out
Key Takeaways
As the stock market continues to fluctuate, investors should avoid panic and instead prefer investing in companies that deliver solid returns after covering both operating and non-operating costs.
Consistently profitable companies are often viewed as more appealing than those running at a loss. To evaluate profitability, investors rely on accounting ratios that measure a company’s bottom-line performance.
With that in mind, NVIDIA Corporation (NVDA - Free Report) and Micron Technology, Inc. (MU - Free Report) stand out as the top profitable stock picks, supported by robust net income ratios and substantial upside potential. NVIDIA and Micron’s shares have soared 65.5% and 592.4%, respectively, over the past year.
Net Income Ratio Explained for Investors
The net income ratio indicates a company’s exact level of profitability. It reflects the percentage of net income relative to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in covering operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
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 33.
Here are two of the 33 stocks that qualified for the screening:
NVIDIA
NVIDIA is a global computing infrastructure company offering graphics, compute and networking solutions (read more: NVIDIA vs. TSMC: One AI Stock Is a Clear Buy Right Now).
NVIDIA currently has a Zacks Rank #2. The 12-month net profit margin of NVDA is 55.6%.
Micron Technology
Micron Technology is a provider of memory and storage products globally (read more: Missed NVIDIA? This AI Stock Up 600%+ Could Be the Biggest 2026 Winner).
At present, Micron has a Zacks Rank #1. The 12-month net profit margin of MU is 41.5%.