Liquidity measures a company’s capability to meet short-term debt obligations. Investors seeking strong portfolio returns should benefit from adding stocks with sound liquidity, which encourages business growth. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns.

Investors may want to consider adding four top-ranked stocks — Alignment Healthcare, Inc. (ALHC Quick QuoteALHC - Free Report) , Toast Inc (TOST Quick QuoteTOST - Free Report) , TTM Technologies, Inc. (TTMI Quick QuoteTTMI - Free Report) and Workiva, Inc (WK Quick QuoteWK - Free Report) — to their portfolios to boost returns.

However, it is important to exercise caution. While high liquidity can indicate that a company is efficiently managing its short-term obligations, it may also suggest underutilization of resources. In some cases, companies with excess liquidity may not be deploying their assets effectively, which could limit growth potential.

Hence, one may consider a company’s efficiency level in addition to its liquidity while identifying prospective winners. A balanced assessment of both liquidity and efficiency can help identify truly promising investment opportunities.

Measures to Identify Liquid Stocks

Current Ratio: It measures current assets relative to current liabilities. The ratio gauges a company’s potential to meet short and long-term debt obligations. A current ratio — the working capital ratio — below 1 indicates that the company has more liabilities than assets. A high current ratio does not always suggest that the company is in good financial shape. It may also indicate that the firm failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.

Quick Ratio: Unlike the current ratio, the quick ratio — the “acid-test ratio” or “quick assets ratio” — indicates a company’s ability to pay short-term obligations. It considers inventory, excluding current assets, relative to current liabilities. A quick ratio of more than 1 is desirable, like the current ratio.

Cash Ratio: This is the most conservative ratio among the three, considering cash, cash equivalents and invested funds relative to current liabilities. It measures a company’s ability to meet existing debt obligations using the most liquid assets. Though a cash ratio of more than 1 may suggest sound financials, a higher number may indicate inefficiency in cash utilization.

A ratio greater than 1 is always desirable, but it may not always represent a company’s financial condition.

Screening Parameters

To pick the best of the lot, we have added asset utilization — a widely used measure of a company’s efficiency — as one of the screening criteria. Asset utilization is the ratio of total sales in the past 12 months to the last four-quarter average of total assets. Though this ratio varies across industries, companies with a ratio higher than that of their industry can be considered efficient.

We added our proprietary Growth Score to the screen to ensure these liquid and efficient stocks have solid growth potential.

Current Ratio, Quick Ratio, and Cash Ratio between 1 and 3: While liquidity ratios greater than 1 are desirable, significantly high ratios may indicate inefficiency.

Asset utilization is more significant than the industry average: A higher asset utilization than the industry average indicates a company’s efficiency.

Zacks Rank equal to #1 (Strong Buy): Only Strong Buy-rated stocks can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.

Growth Score less than or equal to B: Back-tested results show that stocks with a Growth Score of A or B handily beat other stocks when combined with a Zacks Rank #1 or 2 (Buy).

These criteria have narrowed the universe of more than 7,700 stocks to only 11.

Here are four of the 11 stocks that qualified the screen:

Alignment Healthcare is a clinically focused platform designed to improve the healthcare experience for seniors registered under Medicare. Through its various Medicare Advantage plans, it caters to the various requirements and preferences of seniors.

The company recently reported first-quarter 2026 results, wherein revenues came in at $1.24 billion, up 33.3% year over year. Performance was driven by strength and execution across sales, clinical operations and member retention. At quarter-end, health plan membership was 284,800, up 30.9% from the prior year quarter. 
Profitability numbers were also impressive, with adjusted EBITDA up 87.6% year over year to $37.9 million. Revenues for 2026 are now expected to be between $5.16 billion and $5.21 billion.

The Zacks Consensus Estimate for ALHC’s 2026 earnings stands at 20 cents per share, unchanged in the past 30 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 198.81%, on average.

Toast is one of the leading providers of software-as-a-service (SaaS) and hardware solutions focused on the restaurant market. 

For the first quarter of 2026, TOST reported annual recurring revenues of $2.2 billion, up 26% year over year, while Gross Payment Volume was up 22% year over year to $51.3 billion.

While continuing to gain share in its core restaurant segment, the company is scaling into enterprise, international, and retail verticals. Toast is prioritizing AI-led productivity and efficiency gains. The company is using AI to improve customer support, where around 40% of interactions are now handled by AI.

For the full year, Toast raised its guidance, projecting 21%-23% growth in recurring gross profit. Adjusted EBITDA in the range of $790–$810 million.

The Zacks Consensus Estimate for TOST’s 2026 earnings is pegged at $1.34 per share, unchanged in the past 30 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 0.9%, on average.

TTM Technologies manufactures tech products, including radio frequency (“RF”) components, mission systems, RF microwave/microelectronic assemblies, and next-generation interconnect products, including substrates and PCBs.

TTM delivered a strong first quarter, with revenues reaching $846 million, representing 30% year-over-year growth. Adjusted EBITDA margin expanded to 15.7%. Non-GAAP gross margin of 22.3% expanded 150 basis points year over year.

Segment-wise, data center and networking stood out with 61% growth, reflecting strong AI-driven demand. Aerospace and defense grew 11% and represented 40% of the total revenue contribution. For the second quarter, TTMI expects revenues in the range of $930 million to $970 million.

The Zacks Consensus Estimate for TTMI’s 2026 earnings is pegged at $4.13 per share, up 18 cents in the past 30 days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 9.49%, on average.

Workiva offers an AI-driven platform for accounting, finance, sustainability, risk, and audit teams. The company recently reported first-quarter 2026 results, wherein revenues jumped 20% to $247 million. The performance was driven by subscription revenue growth and disciplined execution. Subscription & support revenues increased 21% year over year to $225 million.

Customers numbered 6,665 as of March 31, 2026, up 280 customers from the prior year period. Gross retention rate was 97%, while the net retention rate was 112%. Currently, 75% of subscription revenues come from multi-solution customers, up from 69% a year ago.

Workiva expects second-quarter revenues to be in the range of $250 million to $252 million, with operating margins between 14.5% and 15%.

The Zacks Consensus Estimate for 2026 earnings is pegged at $2.90 per share, unchanged over the past seven days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 89.03%, on average.