In This Article:
For Immediate Release
Chicago, IL – January 9, 2025 – Stocks in this week’s article are AppLovin Corp. APP, Silvercorp Metals Inc. SVM and Powell Industries, Inc. POWL.
3 Strong-Buy Profitable Stocks for 2025: APP, SVM and POWL
Astute investors should search for companies with strong returns after costs, favoring profitable over loss-making ones. We assess profitability using accounting ratios, focusing on the most effective metrics to evaluate a firm’s performance.
To that end, AppLovin Corp., Silvercorp Metals Inc. and Powell Industries, Inc. have been selected as the top picks with a high net income ratio.
Net Income Ratio
The net income ratio gives us a company's exact profitability level. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate ample revenues and successfully manage all business functions.
These few parameters have narrowed the universe of more than 7,685 stocks to only 11.
Here are three of the 11 stocks that qualified for the screening:
AppLovin
AppLovin Corp. develops a software platform to boost advertisers' marketing and content monetization efforts in the United States and globally. The 12-month net profit margin of APP is 26.9%.
Silvercorp Metals
Silvercorp Metals and its subsidiaries acquire, explore, develop and mine mineral properties. The 12-month net profit margin of SVM is 23.1%.
Powell Industries
Powell Industries designs and develops custom equipment and offers related services. The 12-month net profit margin of POWL is 14.8%.
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Disclosure: Officers, directors and 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 mentioned in this material.