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Micron & 2 Profitable Stocks to Buy Before August for Big Upside
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Key Takeaways
Micron, NVIDIA and TD SYNNEX passed profitability screens with strong net income ratios.
MU pairs a 55.9% net profit margin with projected earnings growth of 791% this year.
NVIDIA and SNX combine solid profitability with strong earnings growth expectations.
With August, a relatively volatile month for the stock market, approaching, investors should focus on companies that generate consistently strong returns after covering both operating and non-operating expenses. These companies are generally better positioned to navigate periods of market volatility than those that incur losses. To evaluate a company’s profitability, investors often rely on profitability ratios that measure a company’s ability to generate sustainable bottom-line performance.
Against this backdrop, Micron Technology, Inc. (MU - Free Report) , NVIDIA Corporation (NVDA - Free Report) and TD SYNNEX Corporation (SNX - Free Report) emerge as leading profitable stocks, supported by strong net income ratios and solid growth prospects.
Net Income Ratio: A Key Measure of Profitability
The net income ratio is a key indicator of a company’s overall profitability. It reflects the percentage of net income relative to total sales revenues. Using the net income ratio, one can determine a firm’s ability to cover operating and non-operating expenses with revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
Stock Screening Criteria 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.
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 13.
Here are three of the 13 stocks that qualified for the screening:
Micron Technology
Micron Technology is a provider of memory and storage products globally. The 12-month net profit margin of MU is 55.9%. Micron’s expected earnings growth rate for the current year is 791% (read more: 2 AI Infrastructure Stocks That Could Outperform NVIDIA).
NVIDIA
NVIDIA is a global computing infrastructure company offering graphics, compute, and networking solutions. The 12-month net profit margin of NVDA is 63%. NVIDIA’s expected earnings growth rate for the current year is 90.6% (read more: Missed NVIDIA? This AI Infrastructure Stock Has More Room to Run).
TD SYNNEX
TD SYNNEX operates as a global IT distributor and solutions aggregator. The 12-month net profit margin of SNX is 1.6%. TD SYNNEX’s expected earnings growth rate for the current year is 42.9%.
View the Zacks #1 Rank List
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Micron & 2 Profitable Stocks to Buy Before August for Big Upside
Key Takeaways
With August, a relatively volatile month for the stock market, approaching, investors should focus on companies that generate consistently strong returns after covering both operating and non-operating expenses. These companies are generally better positioned to navigate periods of market volatility than those that incur losses. To evaluate a company’s profitability, investors often rely on profitability ratios that measure a company’s ability to generate sustainable bottom-line performance.
Against this backdrop, Micron Technology, Inc. (MU - Free Report) , NVIDIA Corporation (NVDA - Free Report) and TD SYNNEX Corporation (SNX - Free Report) emerge as leading profitable stocks, supported by strong net income ratios and solid growth prospects.
Net Income Ratio: A Key Measure of Profitability
The net income ratio is a key indicator of a company’s overall profitability. It reflects the percentage of net income relative to total sales revenues. Using the net income ratio, one can determine a firm’s ability to cover operating and non-operating expenses with revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
Stock Screening Criteria 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 equal to #1: Whether the market is good or bad, stocks with a Zacks Rank #1 (Strong 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 13.
Here are three of the 13 stocks that qualified for the screening:
Micron Technology
Micron Technology is a provider of memory and storage products globally. The 12-month net profit margin of MU is 55.9%. Micron’s expected earnings growth rate for the current year is 791% (read more: 2 AI Infrastructure Stocks That Could Outperform NVIDIA).
NVIDIA
NVIDIA is a global computing infrastructure company offering graphics, compute, and networking solutions. The 12-month net profit margin of NVDA is 63%. NVIDIA’s expected earnings growth rate for the current year is 90.6% (read more: Missed NVIDIA? This AI Infrastructure Stock Has More Room to Run).
TD SYNNEX
TD SYNNEX operates as a global IT distributor and solutions aggregator. The 12-month net profit margin of SNX is 1.6%. TD SYNNEX’s expected earnings growth rate for the current year is 42.9%.