Investing

Zacks.com featured highlights include NVIDIA, iRadimed, Perdoceo Education and Axcelis Technologies

Zacks Equity Research

Published: September 25, 2023 10:36 pm

Stocks in this week’s article are NVIDIA NVDA, iRadimed IRMD, Perdoceo Education PRDO and Axcelis Technologies ACLS.

4 Top Profitable Stocks to Invest In Using Net Income Ratio

Investors should use the concept of accounting ratios to evaluate a company’s profitability. After all, they always seek a profitable company over a loss-making one. They also look for companies that offer sturdy returns even after meeting all operating and non-operating costs.

There are 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, NVIDIA, iRadimed, Perdoceo Education and Axcelis Technologies have been selected as the top picks with a high net income ratio.

Net Income Ratio

The 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 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 four of the 12 stocks that qualified for the screening:

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. The 12-month net profit margin of NVDA is 31.6%.

iRadimed engages in developing, manufacturing, marketing and distributing magnetic resonance imaging compatible products. The 12-month net profit margin of IRMD is 24.5%.

Perdoceo Education provides educational services. The 12-month net profit margin of PRDO is 17.5%.

Axcelis Technologies is a leading producer of ion implantation equipment used in the fabrication of semiconductors. The 12-month net profit margin of ACLS is 20.2%.
NVIDIA Corporation (NVDA): Free Stock Analysis Report

Axcelis Technologies, Inc. (ACLS): Free Stock Analysis Report

iRadimed Corporation (IRMD): Free Stock Analysis Report

Perdoceo Education Corporation (PRDO): Free Stock Analysis Report

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Zacks Investment Research

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