Profit-Driven Investing: 3 High Net Income Ratio Stocks to Consider for Strong Returns

Investing in profitable companies is key to ensuring solid returns after covering all costs. To evaluate a company's profitability, we have used accounting ratios, specifically focusing on the net income ratio. This ratio provides an accurate measure of a company's profitability level, showing the percentage of net income relative to total sales revenues. By analyzing the net income ratio, one can assess a firm's effectiveness in addressing both operating and non-operating expenses from its revenues. A higher net income ratio typically indicates a company's capability to generate substantial revenues and manage all business functions successfully. To narrow down the universe of more than 7,685 stocks, we have added a few more criteria to arrive at a winning strategy. These include a Zacks Rank equal to #1 (Strong Buy), trailing 12-month sales and net income growth higher than the industry average, a trailing 12-month net income ratio higher than the industry average, and a percentage rating strong buy greater than 70%. These parameters have narrowed the list to only 14 stocks. Three of these stocks that qualified for the screening are Intuit Inc. (INTU), Dave Inc. (DAVE), and Centrus Energy Corp. (LEU). Intuit offers financial management, compliance, and marketing products and services in the United States, with a 12-month net profit margin of 19.1%. Dave offers financial products and services via its platform in the United States, with a 12-month net profit margin of 13.8%. Centrus Energy provides nuclear fuel components to the United States, Belgium, Japan, the Netherlands, and globally, with a 12-month net profit margin of 22.6%. To access the rest of the stocks on this list, you can sign up for a 2-week free trial to the Research Wizard and start using this screen in your own trading. The Research Wizard is a great place to begin as it is easy to use, everything is in plain language, and it is very intuitive. You can also create your own strategies and test them before taking the investment plunge. Start your Research Wizard trial today and see what gems come out when you open up the Research Wizard and plug in your findings. It's important to note that 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. Performance information for Zacks' portfolios and strategies is available at https://www.zacks.com/performance.