Enhance Portfolio Returns With These 4 Top-Performing Liquid Stocks

Investors looking for solid gains should benefit from adding stocks with sound liquidity, which encourages business growth. Liquidity measures a company’s capability to meet short-term debt obligations. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns

Investors may want to consider adding four top-ranked stocks, such as Remitly Global, Inc. RELY, Frontdoor, Inc. FTDR, Pagaya Technologies Ltd. PGY and Willdan Group, Inc. WLDN to their portfolio to boost returns.

However, one should be careful about investing in a stock with a high liquidity level. High liquidity may also indicate that the company is unable to utilize its assets effectively. Besides sufficient cash in hand, an investor might also consider a company’s capital deployment abilities before investing in the stock. A healthy company with favorable liquidity may prove to be a profitable pick.

Hence, one may consider a company’s efficiency level in addition to its liquidity while identifying prospective winners. A balanced assessment of both liquidity and efficiency can help identify truly promising investment opportunities.

Measures to Identify Liquid Stocks

Current Ratio: It measures current assets relative to current liabilities. The ratio gauges a company’s potential to meet short- and long-term debt obligations. A current ratio — the working capital ratio — below 1 indicates that the company has more liabilities than assets. A high current ratio does not always suggest that the company is in good financial shape. It may also indicate that the firm failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.

Quick Ratio: Unlike the current ratio, the quick ratio — the “acid-test ratio” or “quick assets ratio” — indicates a company’s ability to pay short-term obligations. It considers inventory, excluding current assets, relative to current liabilities. A quick ratio of more than 1 is desirable, like the current ratio.

Cash Ratio: This is the most conservative ratio among the three, considering cash and cash equivalents and invested funds relative to current liabilities. It measures a company’s ability to meet existing debt obligations using the most liquid assets. Though a cash ratio of more than 1 may suggest sound financials, a higher number may indicate inefficiency in cash utilization.

A ratio greater than 1 is always desirable, but may not always represent a company’s financial condition.

Screening Parameters

To pick the best of the lot, we have added asset utilization — a widely used measure of a company’s efficiency — as one of the screening criteria. Asset utilization is the ratio of total sales in the past 12 months to the last four-quarter average of total assets. Though this ratio varies across industries, companies with a ratio higher than that of their industry can be considered efficient.

We added our proprietary Growth Score to the screen to ensure these liquid and efficient stocks have solid growth potential.

Current Ratio, Quick Ratio, and Cash Ratio between 1 and 3: While liquidity ratios greater than 1 are desirable, significantly high ratios may indicate inefficiency.

Asset utilization is more significant than the industry average: A higher asset utilization than the industry average indicates a company’s efficiency.

Zacks Rank equal to #1: Only Strong Buy-rated stocks can get through. You can see the complete list of today’s Zacks #1 Rank stocks here.

Growth Score less than or equal to B: Back-tested results show that stocks with a Growth Score of A or B handily beat other stocks when combined with a Zacks Rank #1 or 2 (Buy).

These criteria have narrowed the universe of more than 7,700 stocks to only 10.

Here are four of the 10 stocks that qualified the screen:

Remitly Global specialises in offering digital financial and remittance services mainly for immigrants. It was established in 2011 and now has an international presence spanning over 170 countries. It is focusing on new products and services to boost its addressable market and strengthen its business model. RELY highlighted  Remitly Business, Remitly One, Stablecoins and Agentic AI as the four core areas of product innovation. 

RELY recently made Remitly Business available to its U.K. customers. Remitly Business enables payment to international contractors and freelancers. It can also be used to make payments to international vendors and suppliers and carry out disbursements and one-time payouts.

RELY reported revenues of $411.9 million for the second quarter of 2025, up 34% year over year. Send volume was up 40% to $18.5 billion. Send volume per active customer jumped 12% year over year. Active customers grew 24% year over year to over 8.5 million, and the take rate came in at 2.23%. Adjusted EBITDA was an impressive $64 million, driven by top-line growth and cost discipline.

The Zacks Consensus Estimate for 2025 earnings is currently pegged at 12 cents per share, up from 9 cents 30 days ago. RELY has a Growth Score of A and a trailing four-quarter earnings surprise of 132.94%, on average.

Frontdoor is the parent company of home service plan brands like American Home Shield, HSA, Landmark and OneGuard. FTDR is headquartered in Memphis, TN, and provides home warranties in the United States.

FTDR is focusing on increasing and retaining Home Warranty Members and boosting Non-Warranty revenue. On the last earnings call, it stated that the integration of the 2-10 acquisition was moving ahead of schedule. Emphasis on boosting its member base, especially in the DTC channel, has been driving growth. DTC member count was up 9% (organic basis) in the second quarter of 2025.

Revenues came in at $617 million, up 14% year over year. The uptick was driven by a 2% increase in price and 12% higher volume. The higher volume was driven by the 2-10 acquisition. Real estate revenues increased 21%. Further, the number of home warranties was 2.09 million, up 7% year over year. Gross margin expanded 130 basis points to 58%.

The Zacks Consensus Estimate for 2025 earnings is pegged at $3.90 per share, unchanged in the past seven days. FTDR has a Growth Score of A and a trailing four-quarter earnings surprise of 66.4%, on average.

Pagaya Technologies is focused on building AI infrastructure for the financial ecosystem and has offices in New York and Tel Aviv. It is reaping the benefits of its product-led growth strategy and emphasizing partner pipeline expansion.

Efforts to diversify beyond personal loans into auto lending and point-of-sale (“POS”) financing will decrease exposure to cyclical risk in any single loan category for PGY. This will ensure stability of the business across economic cycles. In the second quarter of 2025, annualized run-rate for POS and Auto segment volumes reached $1.2 billion and $2 billion, respectively

In the last reported quarter, total revenues and other income of $326 million jumped 30% year over year, driven by a 31% increase in revenues from fees. For the current quarter, Network Volume is expected to be between $2.75 billion and $2.95 billion. Total revenues and other income are forecast to be between $330 million and $350 million.

The Zacks Consensus Estimate for PGY’s 2025 earnings is pegged at $2.65 per share, unchanged in the past seven days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 23.59%, on average.

Willdan provides services such as technical, professional and consulting to government agencies, utilities and private industry. It has a wide-ranging product portfolio encompassing energy policy planning and advisory services, energy efficiency and sustainability, engineering and planning, electric grid solutions and municipal financial consulting services.

Strengthening electric load growth, driven by higher electricity demand at data centers, owing to the proliferation of artificial intelligence, and broader electrification trends, bodes well. WLDN is gaining from momentum in core programs and new contract wins. Synergies from strategic acquisitions are another plus. Contract revenues in the last reported quarter jumped 23% year over year while net revenues were up 31.1%.

For 2025, Willdan expects net revenues to be between $340 million and $350 million, while adjusted EBITDA is expected to be in the range of $70-$73 million.
The Zacks Consensus Estimate for WLDN’s 2025 earnings is pegged at $3.60 per share, unchanged in the past seven days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 53.96%, on average.

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Disclosure: Officers, directors and 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 mentioned in this material.

Disclosure: Performance information for Zacks’ portfolios and strategies is available at: https://www.zacks.com/performance.

 

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