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Boost Your Portfolio Returns With These 4 Top-Performing Liquid Stocks
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Key Takeaways
Stocks like CMRC, MNDY, SMTC and TLS were screened for strong liquidity and asset efficiency.
The screen narrowed 7,700 stocks to eight, with these four meeting strict efficiency and growth criteria.
Each stock also boasts higher asset utilization than its industry average and solid growth attributes.
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 — Commerce.com, Inc. (CMRC - Free Report) , monday.com Ltd. (MNDY - Free Report) , Semtech Corporation (SMTC - Free Report) and Telos Corporation (TLS - 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.
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 eight.
Here are four of the eight stocks that qualified the screen:
Commerce.com is the parent company of BigCommerce, Feedonomics and Makeswift. The company provides an open, intelligent ecosystem of technology solutions to support various business models, including business-to-consumer (“B2C”), business-to-business (“B2B”) and small business (“SB”) use cases.
The company recently launched Feedonomics Enrichment and BigCommerce Catalog Enrichment, forming the mainstay of its agentic commerce solutions. Feedonomics Enrichment and BigCommerce Catalog Enrichment will support B2C and B2B merchants as they convert their catalogs into AI-ready product intelligence at scale, added CMRC.
The company has also partnered with Cloudflare to enable AI agents to search, compare and shop directly on BigCommerce merchants’ online stores leveraging WebMCP technology. The feature is enabled for eligible merchants without any additional setup.
In September, the company also announced a strategic plan to boost profitability and free cash flow generation. CMRC targets non-GAAP operating margins of at least 20% beginning in 2027 and higher free cash flow. The company aims to lower its annualized non-GAAP operating costs by approximately $60 million to $80 million. Most of these savings are expected to translate into additional free cash flow. The board of directors also authorized a share repurchase program of up to $50 million over the next two years.
The Zacks Consensus Estimate for 2026 earnings stands at 34 cents per share, unchanged in the past seven days. The company has a Growth Score of A and an average trailing four-quarter earnings surprise of 204.6%.
monday.com specializes in the development of software applications. AI adoption is emerging as a big growth opportunity for the company. Recently, the company launched Harmony, an AI-powered voice agent platform. The platform aims to accelerate deal closures, improve sales and drive revenue growth through specialized Large Language Models (LLMs).
AI ARR doubled sequentially from the first quarter to the second quarter of 2026 and accounted for 17% of net new ARR added during the quarter. Second-quarter revenues of $364.6 million increased 22% year over year.
Customers generating more than $100,000 in ARR increased 37%, while those above $500,000 ARR jumped 68% year over year. Record net additions in both cohorts demonstrate that monday.com is successfully moving toward larger customers.
For the third quarter, monday.com expects revenues of $368-$370 million, implying 16%-17% year-over-year growth.
The Zacks Consensus Estimate for MNDY’s 2026 earnings is $5.58 per share, unchanged over the past seven days. The company has a Growth Score of B and an average trailing four-quarter earnings surprise of 23.56%.
Semtech manufactures high-performance semiconductor chips for AI data center networking and connected IoT devices.
The company is benefiting from strong data-center demand, particularly across its FiberEdge, CopperEdge and emerging photonics portfolio. The company’s photonics portfolio includes semiconductor optical amplifiers, high-power lasers and high-speed photodiodes for scale-up, scale-out and scale-across data center connectivity applications.
Data-center revenues reached $100 million in the second quarter of fiscal 2027, up 39% sequentially and 91% year over year. The top line was supported by continued strength in 800G products and a ramp in 1.6T CopperEdge and the ramp of 1.6T FiberEdge. LoRa represents another major growth engine. LoRa-enabled net sales increased 31% sequentially and 58% year over year to $58 million. Growing traction for the LoRa Gen 4 platform, including LoRa Plus and other RF protocols, bodes well.
On Oct. 15, 2026, at its Analyst Day, Semtech unveiled an ambitious fiscal 2030 financial framework targeting $3.2 billion in revenues, including $2.1 billion from its data center business, and adjusted EPS of $12.40-$13.00. The company also raised its third-quarter fiscal 2027 revenue and adjusted EPS outlook to $417.5 million and $1.14, respectively, at the midpoint.
The Zacks Consensus Estimate for SMTC’s fiscal 2027 earnings is pegged at $3.65 per share, unchanged in the past seven days. The company has a Growth Score of A and an average trailing four-quarter earnings surprise of 9.82%.
Telos is a cyber, cloud and enterprise security solutions provider serving U.S. federal government, regulated industries and global enterprises. Growth in its Telos ID business, particularly the TSA PreCheck and Defense Manpower Data Center programs, is supporting revenue expansion.
In August, Telos secured a $34.3 million task order to revamp cybersecurity risk management for the U.S. Air Force Intelligence Community. This was followed by a $13.7 million contract from the U.S. Department of Health and Human Services in September. TLS also secured a three-year, $13.5 million contract to support U.S. Air Force Intelligence Community cyber operations in October.
For 2026, management raised its adjusted EBITDA guidance to $23.6-$28.6 million from $20.6-$28 million while narrowing its revenue outlook to $187-$195 million from $187-$200 million.
The Zacks Consensus Estimate for TLS’ 2026 earnings is pegged at 15 cents per share, unchanged in the past seven days. The company has a Growth Score of A and an average trailing four-quarter earnings surprise of 212.5%.
View the Zacks #1 Rank List
Image: Bigstock
Boost Your Portfolio Returns With These 4 Top-Performing Liquid Stocks
Key Takeaways
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 — Commerce.com, Inc. (CMRC - Free Report) , monday.com Ltd. (MNDY - Free Report) , Semtech Corporation (SMTC - Free Report) and Telos Corporation (TLS - 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 eight.
Here are four of the eight stocks that qualified the screen:
Commerce.com is the parent company of BigCommerce, Feedonomics and Makeswift. The company provides an open, intelligent ecosystem of technology solutions to support various business models, including business-to-consumer (“B2C”), business-to-business (“B2B”) and small business (“SB”) use cases.
The company recently launched Feedonomics Enrichment and BigCommerce Catalog Enrichment, forming the mainstay of its agentic commerce solutions. Feedonomics Enrichment and BigCommerce Catalog Enrichment will support B2C and B2B merchants as they convert their catalogs into AI-ready product intelligence at scale, added CMRC.
The company has also partnered with Cloudflare to enable AI agents to search, compare and shop directly on BigCommerce merchants’ online stores leveraging WebMCP technology. The feature is enabled for eligible merchants without any additional setup.
In September, the company also announced a strategic plan to boost profitability and free cash flow generation. CMRC targets non-GAAP operating margins of at least 20% beginning in 2027 and higher free cash flow. The company aims to lower its annualized non-GAAP operating costs by approximately $60 million to $80 million. Most of these savings are expected to translate into additional free cash flow. The board of directors also authorized a share repurchase program of up to $50 million over the next two years.
The Zacks Consensus Estimate for 2026 earnings stands at 34 cents per share, unchanged in the past seven days. The company has a Growth Score of A and an average trailing four-quarter earnings surprise of 204.6%.
monday.com specializes in the development of software applications. AI adoption is emerging as a big growth opportunity for the company. Recently, the company launched Harmony, an AI-powered voice agent platform. The platform aims to accelerate deal closures, improve sales and drive revenue growth through specialized Large Language Models (LLMs).
AI ARR doubled sequentially from the first quarter to the second quarter of 2026 and accounted for 17% of net new ARR added during the quarter. Second-quarter revenues of $364.6 million increased 22% year over year.
Customers generating more than $100,000 in ARR increased 37%, while those above $500,000 ARR jumped 68% year over year. Record net additions in both cohorts demonstrate that monday.com is successfully moving toward larger customers.
For the third quarter, monday.com expects revenues of $368-$370 million, implying 16%-17% year-over-year growth.
The Zacks Consensus Estimate for MNDY’s 2026 earnings is $5.58 per share, unchanged over the past seven days. The company has a Growth Score of B and an average trailing four-quarter earnings surprise of 23.56%.
Semtech manufactures high-performance semiconductor chips for AI data center networking and connected IoT devices.
The company is benefiting from strong data-center demand, particularly across its FiberEdge, CopperEdge and emerging photonics portfolio. The company’s photonics portfolio includes semiconductor optical amplifiers, high-power lasers and high-speed photodiodes for scale-up, scale-out and scale-across data center connectivity applications.
Data-center revenues reached $100 million in the second quarter of fiscal 2027, up 39% sequentially and 91% year over year. The top line was supported by continued strength in 800G products and a ramp in 1.6T CopperEdge and the ramp of 1.6T FiberEdge. LoRa represents another major growth engine. LoRa-enabled net sales increased 31% sequentially and 58% year over year to $58 million. Growing traction for the LoRa Gen 4 platform, including LoRa Plus and other RF protocols, bodes well.
On Oct. 15, 2026, at its Analyst Day, Semtech unveiled an ambitious fiscal 2030 financial framework targeting $3.2 billion in revenues, including $2.1 billion from its data center business, and adjusted EPS of $12.40-$13.00. The company also raised its third-quarter fiscal 2027 revenue and adjusted EPS outlook to $417.5 million and $1.14, respectively, at the midpoint.
The Zacks Consensus Estimate for SMTC’s fiscal 2027 earnings is pegged at $3.65 per share, unchanged in the past seven days. The company has a Growth Score of A and an average trailing four-quarter earnings surprise of 9.82%.
Telos is a cyber, cloud and enterprise security solutions provider serving U.S. federal government, regulated industries and global enterprises. Growth in its Telos ID business, particularly the TSA PreCheck and Defense Manpower Data Center programs, is supporting revenue expansion.
In August, Telos secured a $34.3 million task order to revamp cybersecurity risk management for the U.S. Air Force Intelligence Community. This was followed by a $13.7 million contract from the U.S. Department of Health and Human Services in September. TLS also secured a three-year, $13.5 million contract to support U.S. Air Force Intelligence Community cyber operations in October.
For 2026, management raised its adjusted EBITDA guidance to $23.6-$28.6 million from $20.6-$28 million while narrowing its revenue outlook to $187-$195 million from $187-$200 million.
The Zacks Consensus Estimate for TLS’ 2026 earnings is pegged at 15 cents per share, unchanged in the past seven days. The company has a Growth Score of A and an average trailing four-quarter earnings surprise of 212.5%.