In This Article:
For Immediate Release
Chicago, IL – July 26, 2022 – Stocks in this week’s article are Vaalco Energy EGY, Star Bulk Carriers SBLK and Banner BANR.
3 Top-Rated Profitable Stocks to Buy Using Net Income Ratios
Investors always seek a profitable company over an unsuccessful one. Thus, they look for companies that offer sturdy returns to investors even after meeting all operating and non-operating costs. Here, we have used the concept of accounting ratios to evaluate a company's profitability. There is a variety of profitability ratios, from which we have chosen the most successful and frequently used profitability metric to determine the bottom-line performance of a company.
To that end, Vaalco Energy, Star Bulk Carriers and Banner have been selected as the top picks with a high net income ratio.
Net Income Ratio
Net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a company's effectiveness to meet 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 three of the 12 stocks that qualified the screening:
Vaalco Energy is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas. The 12-month net profit margin of EGY is 36.9%.
Star Bulk Carriers is a global shipping company providing worldwide seaborne transportation solutions in the dry bulk sector. The 12-month net profit margin of SBLK is 51.3%.
Banner is a bank holding company operating two commercial banks in five Western states through a network of branches. The 12-month net profit margin of BANR is almost 31.2%.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1956909/3-top-rated-profitable-stocks-to-buy-using-net-income-ratio
Disclosure: 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.