Zacks.com featured highlights include Interface, Research Solutions, Northrim and Dave

For Immediate Release

Chicago, IL – December 15, 2025 – Stocks in this week’s article are Interface, Inc. TILE, Research Solutions Inc. RSSS, Northrim BanCorp, Inc. NRIM and Dave Inc. DAVE.

Grab These 4 Stocks with Solid Net Profit Margins to Enhance Returns

The primary purpose of a business is to generate profits that can be reinvested in expansion or distributed to reward shareholders. The net profit margin is an effective tool for measuring the profits a business reaps.

A higher net margin underlines a company’s efficiency in translating sales into actual profits. Moreover, this metric offers insight into how well a company is run and the headwinds weighing on it. Interface, Inc., Research Solutions Inc., Northrim BanCorp, Inc. and Dave Inc. boast solid net profit margins.

Net Profit Margin = Net profit/Sales * 100.

In simple terms, net profit is the amount a company retains after deducting all costs, interest, depreciation, taxes and other expenses. In fact, net profit margin can turn out to be a potent point of reference to gauge the strength of a company’s operations and its cost-control measures.

Also, higher net profit is essential for rewarding stakeholders. Further, strength in the metric not only attracts investors but also draws well-skilled employees who eventually enhance the value of a business.

Moreover, a higher net profit margin compared with its peers provides a company with a competitive edge.

Pros and Cons

Net profit margin helps investors gain clarity on a company’s business model in terms of pricing policy, cost structure and manufacturing efficiency. Hence, a strong net profit margin is preferred by all classes of investors.

However, net profit margin, as an investment criterion, has its share of pitfalls. The metric varies widely from industry to industry. While net income is a key metric for investment measurement in traditional industries, it is not that important for technology companies.

In addition, the difference in accounting treatment of various items — especially non-cash expenses like depreciation and stock-based compensation — makes comparison a daunting task.

Furthermore, for companies preferring to grow with debt instead of equity funding, higher interest expenses usually weigh on net profit. In such cases, the measure is rendered ineffective while analyzing a company’s performance.

The Winning Strategy

A healthy net profit margin and solid EPS growth are the two most sought-after elements in a business model.

Apart from these, we have added a few criteria to ensure maximum returns from this strategy.

Let us discuss the above-mentioned four stocks out of the 12 stocks that qualified the screening.

Interface is the world's largest manufacturer of modular carpets, which it markets under the Interface and FLOR brands. The stock currently sports a Zacks Rank of 1 and has a VGM Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Interface’s 2025 earnings has been revised upward to $1.85 per share from $1.70 in the past 60 days. TILE outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 30.3%.

Research Solutions, through its wholly owned subsidiary Reprints Desk, delivers research information services and software to companies in Life Sciences and other research-intensive industries. The stock sports a Zacks Rank of 1 at present and has a VGM Score of A.

The Zacks Consensus Estimate for Research Solutions’ fiscal 2026 earnings has remained unchanged at 14 cents per share over the past 60 days. RSSS surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being -93.8%.

Northrim BanCorp is a full-service commercial bank that provides a full range of personal and business banking services. The stock currently sports a Zacks Rank of 1 and has a VGM Score of A.

The Zacks Consensus Estimate for Northrim BanCorp’s 2025 earnings has moved north by 15 cents to $2.50 per share in the past 30 days. NRIM beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed the same on one occasion, the average surprise being 19%.

Dave offers several financial products and services, including budget and personal financial management tools, through its platform. The stock sports a Zacks Rank of 1 at present and has a VGM Score of B.

The Zacks Consensus Estimate for Dave’s 2025 earnings has been revised upward by 24.7% to $12.96 per share in the past 60 days. DAVE topped the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 74.7%.

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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/2803477/grab-these-4-stocks-with-solid-net-profit-margin-to-enhance-returns?art_rec=quote-stock_overview-zacks_news-ID01-txt-2803477

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Company: Zacks.com

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