4 Solid Net Profit Margin Stocks to Boost Portfolio Returns

Zacks12-17

Investors seek companies that consistently generate profits. One of the best metrics to measure profitability is the net profit margin. This metric highlights a company's ability to convert sales into...

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This metric highlights a company's ability to convert sales into...</p>\n\n<a href=\"https://finance.yahoo.com/news/4-solid-net-profit-margin-120000540.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>4 Solid Net Profit Margin Stocks to Boost Portfolio Returns</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n4 Solid Net Profit Margin Stocks to Boost Portfolio Returns\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-17 20:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/4-solid-net-profit-margin-120000540.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Investors seek companies that consistently generate profits. One of the best metrics to measure profitability is the net profit margin. This metric highlights a company's ability to convert sales into...</p>\n\n<a href=\"https://finance.yahoo.com/news/4-solid-net-profit-margin-120000540.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4531","symbol_name":"中概回港概念","start_time":0,"source_url":"https://finance.yahoo.com/news/4-solid-net-profit-margin-120000540.html","article_id":"2492917957","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/juRbEvTlW3ZAvTOwyPI.kg--~B/aD00NjU7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/ddc9c07648202eb2f8043ba228b821f9"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492917957","pubTimestamp":1734436800,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Investors seek companies that consistently generate profits. One of the best metrics to measure profitability is the net profit margin. This metric highlights a company's ability to convert sales into actual profits, providing insights into operational efficiency and management quality. Castle Biosciences, Inc. CSTL, Qifu Technology, Inc. QFIN, Euroseas Ltd. ESEA and Strategic Education, Inc. STRA boast solid net profit margins.Net Profit Margin = Net profit/Sales * 100.Net profit represents the amount retained after all expenses, including costs, interest, depreciation and taxes. A strong net profit margin indicates effective cost control and operational strength, which are crucial for rewarding stakeholders and attracting investors and talented employees. 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One of the best metrics to measure profitability is the net profit margin. This metric highlights a company's ability to convert sales into actual profits, providing insights into operational efficiency and management quality. Castle Biosciences, Inc. CSTL, Qifu Technology, Inc. QFIN, Euroseas Ltd. ESEA and Strategic Education, Inc. STRA boast solid net profit margins.\nNet Profit Margin = Net profit/Sales * 100.\nNet profit represents the amount retained after all expenses, including costs, interest, depreciation and taxes. A strong net profit margin indicates effective cost control and operational strength, which are crucial for rewarding stakeholders and attracting investors and talented employees. Moreover, a higher net profit margin compared to peers provides a company with a competitive edge.\nPros and Cons\nNet profit margin helps investors gain clarity on a company’s business model in terms of pricing policy, cost structure and manufacturing efficiency. Hence, a strong net profit margin is preferred by all classes of investors.\nHowever, this metric varies across industries, making direct comparisons challenging. While it is vital for traditional industries, it might be less relevant for technology companies.\nDifferences in accounting practices, especially with regard to non-cash expenses like depreciation and stock-based compensation, further complicate comparisons. Additionally, companies that rely heavily on debt may show lower net profits due to high interest expenses, limiting the metric's effectiveness in evaluating performance.\nThe Winning Strategy\nA healthy net profit margin and solid EPS growth are the two most sought-after elements in a business model.\nApart from these, we have added a few criteria to ensure maximum returns from this strategy.\nScreening Parameters\nNet Margin 12 months – Most Recent (%) greater than equal to 0: High net profit margin indicates solid profitability.\nPercentage Change in EPS F(0)/(F-1) greater than equal to 0: It indicates earnings growth.\nAverage Broker Rating (1-5) equal to 1: A rating of #1 indicates brokers’ extreme bullishness on the stock.\nZacks Rank less than or equal to 2: Stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) generally perform better than their peers in all types of market environments.\nVGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.\nHere we discuss our four picks from the 30 stocks that qualified the screen:\nCastle Biosciences is a commercial-stage provider of testing solutions for the diagnosis and treatment of dermatologic cancer. It is focused on providing physicians and patients with clinically actionable genomic information. The stock currently sports a Zacks Rank of 1 and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.\nThe Zacks Consensus Estimate for Castle Biosciences’ 2024 bottom line has been revised upward to earnings of 34 cents from a loss of 8 cents per share projected 30 days ago. CSTL surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 172.7%.\nQifu Technology is a credit-tech platform based principally in China that provides a comprehensive suite of technology services to assist financial institutions, consumers and small and medium enterprises in the loan lifecycle, ranging from borrower acquisition, preliminary credit assessment, fund matching and post-facilitation services. The stock sports a Zacks Rank of 1 at present and a VGM Score of A.\nThe Zacks Consensus Estimate for Qifu Technology’s 2024 earnings has been revised downward to $5.71 per share from $5.04 in the past 30 days. QFIN surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while matching the same on one occasion, the average surprise being 12.4%.\nEuroseas was formed under the laws of the Republic of the Marshall Islands to consolidate the ship-owning interests of the Pittas family of Athens, Greece, which has been in the shipping business for the past 136 years. It operates in the dry cargo, dry bulk and container shipping markets. The stock sports a Zacks Rank of 1 at present and has a VGM Score of B.\nThe Zacks Consensus Estimate for Euroseas’ 2024 earnings has been revised upward by 18 cents to $15.24 per share in the past 30 days. ESEA surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing the same on two occasions, the average surprise being 20.9%.\nStrategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. The stock currently carries a Zacks Rank of 2 and has a VGM Score of B.\nThe Zacks Consensus Estimate for Strategic Education’s 2024 earnings has been revised upward by 3 cents to $4.79 per share in the past 30 days. STRA surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 40.4%.\nGet the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.\nThe Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.\nClick here to sign up for a free trial to the Research Wizard today.\nDisclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.\nDisclosure: Performance information for Zacks' portfolios and strategies are available at: https://www.zacks.com/performance/.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nStrategic Education Inc. (STRA) : Free Stock Analysis Report\nEuroseas Ltd. (ESEA) : Free Stock Analysis Report\nQifu Technology, Inc. (QFIN) : Free Stock Analysis Report\nCastle Biosciences, Inc. (CSTL) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492917957"}