Add These 4 Top-Performing Liquid Stocks to Boost Portfolio Returns

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 Pagaya Technologies Ltd. PGY, Remitly Global, Inc. RELY, Frontdoor, Inc. FTDR and Zumiez Inc. ZUMZ to their portfolio to boost returns.

Investors should be alert before considering such stocks. While a high liquidity level may imply that the company is clearing its dues faster than its peers, it might also suggest that it cannot utilize its assets competently.

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:

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 the stability of the business across economic cycles. In the second quarter of 2025, the 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 third 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 for the third quarter. To boost its growth trajectory, PGY recently expanded its current revolving credit facility to $132 million, from $58 million earlier.

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.

Remitly Global offers 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. The four core areas of product innovation include Remitly Business, Remitly One, Stablecoins and Agentic AI.

In September 2025, RELY unveiled Remitly One, an all-in-one financial membership that will aid clients in transferring, managing, and growing their money across borders. Before that, RELY 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 60 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 revenues. 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 in the second quarter of 2025 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. The 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.

Zumiez is a specialty retailer for a range of apparel, footwear and accessories. Its stores also feature a range of hard goods for youngsters, which include items like snowboards, skateboards, bindings and other equipment.

North America remains the key catalyst of Zumiez’s performance despite heightened macroeconomic uncertainty, influenced by evolving trade policy developments. In the fiscal second quarter, this region generated $180 million in sales, up 2.1% from the prior year. Total net sales of $214.3 million surpassed the Zacks Consensus Estimate of $211 million and increased 1.9% from the prior-year quarter.

Comps were up 2.5% year over year, representing the fifth consecutive quarter of growth. Comps in North America rose 4.2%, representing the sixth consecutive quarter of growth, while international comps declined 5.5%. Among product categories, the women’s category saw the highest comps increase, followed by hard goods and accessories. Conversely, footwear was the largest negative comps category, followed by men’s.

The Zacks Consensus Estimate for ZUMZ’s fiscal 2025 earnings is pegged at 42 cents per share, unchanged in the past seven days. The company has a Growth Score of B and a trailing four-quarter earnings surprise of 35.4%, on average.

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