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Micron & 2 Profitable Stocks to Buy Now for Explosive Upside
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Key Takeaways
Micron has a 63.8% net profit margin and 133.1% expected earnings growth this year.
NVIDIA posts a 63.7% net profit margin, with nearly 95% expected earnings growth this year.
Sandisk leads with a 67% net profit margin and 221.4% expected earnings growth this year.
Investors typically favor companies that deliver strong returns after covering all operating and non-operating expenses. Profitable businesses are usually preferred over money-losing ones. To assess a company’s profitability, investors rely on profitability ratios to measure its ability to generate consistent earnings and sustainable profitability over time.
Against this backdrop, Micron Technology (MU - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Sandisk Corporation (SNDK - Free Report) emerge as notable profitable stocks, backed by strong net income margins and potential for further upside.
Understanding the Importance of Net Income Ratio
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 can generate sufficient revenue and manage all business functions effectively.
Key Criteria Used to Select Stocks in the Research Wizard
The net income ratio is not the only indicator of future winners. So, we added a few more criteria to build 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 strong 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 30.
Here are three of the 30 stocks that qualified for the screening:
Micron
Micron provides semiconductor memory and storage products across the United States, Asia, Europe and global markets. Micron has a Zacks Rank #2. MU’s 12-month net profit margin is 63.8%. Its expected earnings growth rate for the current year is 133.1% (read more: Micron vs.NVIDIA: Which AI Stock Is the Better Buy After Earnings?).
NVIDIA
NVIDIA is a leading AI infrastructure company operating across global markets. NVIDIA has a Zacks Rank #2. NVDA’s 12-month net profit margin is 63.7%. Its expected earnings growth rate for the current year is nearly 95% (read more: NVIDIA and AMD Sell-Off: Which AI Stock Is the Better Buy on the Dip?).
Sandisk
Sandisk develops and sells NAND flash-based storage solutions worldwide. Sandisk has a Zacks Rank #2. SNDK’s 12-month net profit margin is 67%. Its expected earnings growth rate for the current year is 221.4%.
View the Zacks #1 Rank List
Image: Shutterstock
Micron & 2 Profitable Stocks to Buy Now for Explosive Upside
Key Takeaways
Investors typically favor companies that deliver strong returns after covering all operating and non-operating expenses. Profitable businesses are usually preferred over money-losing ones. To assess a company’s profitability, investors rely on profitability ratios to measure its ability to generate consistent earnings and sustainable profitability over time.
Against this backdrop, Micron Technology (MU - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Sandisk Corporation (SNDK - Free Report) emerge as notable profitable stocks, backed by strong net income margins and potential for further upside.
Understanding the Importance of Net Income Ratio
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 can generate sufficient revenue and manage all business functions effectively.
Key Criteria Used to Select Stocks in the Research Wizard
The net income ratio is not the only indicator of future winners. So, we added a few more criteria to build 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 strong 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 30.
Here are three of the 30 stocks that qualified for the screening:
Micron
Micron provides semiconductor memory and storage products across the United States, Asia, Europe and global markets. Micron has a Zacks Rank #2. MU’s 12-month net profit margin is 63.8%. Its expected earnings growth rate for the current year is 133.1% (read more: Micron vs.NVIDIA: Which AI Stock Is the Better Buy After Earnings?).
NVIDIA
NVIDIA is a leading AI infrastructure company operating across global markets. NVIDIA has a Zacks Rank #2. NVDA’s 12-month net profit margin is 63.7%. Its expected earnings growth rate for the current year is nearly 95% (read more: NVIDIA and AMD Sell-Off: Which AI Stock Is the Better Buy on the Dip?).
Sandisk
Sandisk develops and sells NAND flash-based storage solutions worldwide. Sandisk has a Zacks Rank #2. SNDK’s 12-month net profit margin is 67%. Its expected earnings growth rate for the current year is 221.4%.