In This Article:
For Immediate Release
Chicago, IL – December 18, 2024 – Stocks in this week’s article are NVIDIA Corp. NVDA and Royal Caribbean Cruises Ltd. RCL.
NVDA and RCL Are Profitable S&P 500 Stocks for 2025: Time to Buy?
The S&P 500 is poised for a Santa Rally and is expected to extend its winning streak in the new year, banking on Donald Trump’s election win and potential interest rate cuts. Hence, investors should seek out profitable stocks over unprofitable ones that can take advantage of the broader index’s upward trajectory.
To that end, NVIDIA Corp. and Royal Caribbean Cruises Ltd. are worth buying because of their high net income ratios.
Net Income Ratio
The net income ratio shows a company’s 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.
Here are the best two of the 34 stocks that qualified for the screening:
NVIDIA
NVIDIA Corporation leads in visual computing technologies and invented the graphic processing unit (GPU). Its promising third-quarter data center results and outlook make it an enticing buy. NVIDIA Corporation has a Zacks Rank #2 (read more: 3 Reasons Besides Q3 Data Center Success to Buy NVIDIA Stock).
NVIDIA’s 12-month net profit margin is 55.7%. The company’s expected earnings growth rate for the next year is 40.8% (read more: NVIDIA or Palantir: The Best AI Investment for 2025).
Royal Caribbean Cruises
Royal Caribbean Cruises operates as a cruise company worldwide. Strong demand for cruising, an uptick in booking numbers, and an increasing loyal customer base are benefiting the company, making it a solid buy. Royal Caribbean Cruises has a Zacks Rank #2.
Royal Caribbean Cruises’ 12-month net profit margin is 16.2%. The company’s expected earnings growth rate for the next year is 23.8%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The 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.