Zacks.com featured highlights NVIDIA, Broadcom and ServiceNow

For Immediate Release

Chicago, IL – August 5, 2025 – The stocks in this week’s article are NVIDIA Corp. NVDA, Broadcom Inc. AVGO and ServiceNow, Inc. NOW.

NVIDIA & 2 Other Profitable Stocks to Retain in August

Investors should look for companies that generate strong returns after accounting for all operating and non-operating expenses. Therefore, it’s wise to invest in a profitable company rather than one that is losing money.

Here, we use accounting ratios to evaluate a company’s profitability. Among various profitability ratios, we select the most effective and commonly used metric to assess a firm’s bottom-line performance.

To that end, NVIDIA Corp., Broadcom Inc. and ServiceNow, Inc. have been selected as top picks for the second half of the year due to their high net income ratios.

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 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 three of the 11 stocks that qualified for the screening:

NVIDIA

NVIDIA offers solutions for graphics, computing, and networking in the United States, Singapore, Taiwan, China, Hong Kong and around the world. The 12-month net profit margin of NVDA is 51.7%. NVIDIA has a Zacks Rank #3 (Hold) (read more: IonQ or NVIDIA: Which Stock Has More Upside in Quantum?).

Broadcom

Broadcom creates, builds and provides a range of semiconductor devices and infrastructure software solutions around the globe. The 12-month net profit margin of AVGO is 22.6%. Broadcom has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

ServiceNow

ServiceNow offers a cloud-based solution designed for digital workflows across North America, Europe, the Middle East and Africa, Asia Pacific, and on an international scale. The 12-month net profit margin of NOW is 13.8%. ServiceNow has a Zacks Rank #3.

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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/2663671/nvidia-2-other-profitable-stocks-to-retain-in-august

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