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NVIDIA & 2 Profitable Stocks to Buy Now for Big Upside
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Key Takeaways
NVIDIA has a 63.7% net profit margin and 93.9% expected earnings growth for the current year.
Hamilton Lane posts a 32.1% net profit margin and 22.9% expected earnings growth this year.
Marex Group has a 17.4% net profit margin and 46.4% expected earnings growth for the current year.
Investors should look for companies that deliver strong returns after covering all operating and non-operating expenses. Therefore, investing in profitable businesses is generally preferred to investing in money-losing ones. To assess a company’s profitability, investors often use profitability ratios to measure its ability to generate consistent, sustainable earnings.
On that note, NVIDIA Corporation (NVDA - Free Report) , Hamilton Lane Incorporated (HLNE - Free Report) and Marex Group Limited (MRX - Free Report) stand out as the most profitable stocks, supported by strong net income ratios and upside potential.
Why Net Income Ratio Matters to Investors
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. The net income ratio helps assess 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 revenue and manage all business functions effectively.
Stock Screening Criteria Used in the 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 14.
Here are three of the 14 stocks that qualified for the screening:
NVIDIA
NVIDIA is a leading AI infrastructure company operating across global markets. NVDA’s 12-month net profit margin is 63.7%. Its expected earnings growth rate for the current year is 93.9% (read more: NVIDIA vs. AMD After Earnings: Which AI Stock Should You Buy Now?).
Hamilton Lane
Hamilton Lane is a private equity and venture capital firm investing across various growth stages and strategies. HLNE’s 12-month net profit margin is 32.1%. Its expected earnings growth rate for the current year is 22.9%.
Marex Group
Marex Group is a financial services firm providing liquidity, market access and infrastructure across global commodity and financial markets. MRX’s 12-month net profit margin is 17.4%. Its expected earnings growth rate for the current year is 46.4%.
View the Zacks #1 Rank List
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NVIDIA & 2 Profitable Stocks to Buy Now for Big Upside
Key Takeaways
Investors should look for companies that deliver strong returns after covering all operating and non-operating expenses. Therefore, investing in profitable businesses is generally preferred to investing in money-losing ones. To assess a company’s profitability, investors often use profitability ratios to measure its ability to generate consistent, sustainable earnings.
On that note, NVIDIA Corporation (NVDA - Free Report) , Hamilton Lane Incorporated (HLNE - Free Report) and Marex Group Limited (MRX - Free Report) stand out as the most profitable stocks, supported by strong net income ratios and upside potential.
Why Net Income Ratio Matters to Investors
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. The net income ratio helps assess 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 revenue and manage all business functions effectively.
Stock Screening Criteria Used in the 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 14.
Here are three of the 14 stocks that qualified for the screening:
NVIDIA
NVIDIA is a leading AI infrastructure company operating across global markets. NVDA’s 12-month net profit margin is 63.7%. Its expected earnings growth rate for the current year is 93.9% (read more: NVIDIA vs. AMD After Earnings: Which AI Stock Should You Buy Now?).
Hamilton Lane
Hamilton Lane is a private equity and venture capital firm investing across various growth stages and strategies. HLNE’s 12-month net profit margin is 32.1%. Its expected earnings growth rate for the current year is 22.9%.
Marex Group
Marex Group is a financial services firm providing liquidity, market access and infrastructure across global commodity and financial markets. MRX’s 12-month net profit margin is 17.4%. Its expected earnings growth rate for the current year is 46.4%.