|
|
|
|
|||||
|
|
|
Chicago, IL – May 16, 2025 – The stocks in this week’s article are Greenland Technologies Holding Corp. GTEC, Great Lakes Dredge & Dock Corp. GLDD, Orion Group Holdings, Inc. ORN and Climb Global Solutions, Inc. CLMB.
Investors prefer to invest in businesses that reap profits on a regular basis. To gauge the extent of profits, there is no better metric than the net profit margin.
A higher net margin reflects a company’s efficiency in converting sales into actual profits. Greenland Technologies Holding Corp., Great Lakes Dredge & Dock Corp., Orion Group Holdings, Inc. and Climb Global Solutions, Inc. boast solid net profit margins.
In simple terms, net profit is the amount a company retains after deducting all costs, interest, depreciation, taxes and other expenses. In fact, the 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 a business's value.
Moreover, a higher net profit margin compared with its peers provides the company with a competitive edge.
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.
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.
Here, we discuss our four picks from the 27 stocks that qualified the screening:
Greenland Technologies is a developer and manufacturer of drivetrain systems for material handling machinery, electric vehicles and electric industrial vehicles. The stock sports a Zacks Rank of 1 at present and has a VGM Score of A.
The Zacks Consensus Estimate for Greenland Technologies’ 2025 earnings has been revised upward to 48 cents per share from 46 cents in the past 30 days. GTEC surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 540.6%.
Great Lakes Dredge & Dock is the largest provider of dredging services in the United States, conducting business to maintain and deepen shipping channels, reclaim land from the ocean and renourish storm-damaged coastline. The stock sports a Zacks Rank #1 and has a VGM Score of A.
The Zacks Consensus Estimate for Great Lakes Dredge & Dock’s 2025 earnings has been revised upward by 24 cents to 93 cents per share over the past seven days. GLDD surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 93.3%.
Orion Group is a construction company that provides services on and off the water primarily in the continental United States, Alaska, Canada and the Caribbean Basin. The stock currently sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate of 16 cents per share for Orion Group’s 2025 earnings has moved 9 cents north in the past 30 days. ORN surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being -104.4%.
Climb Global Solutions is a value-added IT distribution and solutions company specializing in emerging and disruptive technologies. The company provides IT distribution and solutions for emerging companies principally in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries. At present, the stock sports a Zacks Rank #1 and has a VGM Score of B.
The Zacks Consensus Estimate for Climb Global Solutions’ 2025 earnings has remained unchanged over the past 30 days at $5.40 per share. CLMB surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average surprise being 63.4%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and back-testing software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
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
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2471673/4-top-ranked-stocks-with-solid-net-profit-margin-to-enhance-returns
Follow us on Twitter: https://www.twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Contact: Jim Giaquinto
Company: Zacks.com
Phone: 312-265-9268
Email: [email protected]
Visit: https://www.zacks.com/
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 13 hours | |
| 15 hours | |
| 19 hours | |
| May-15 | |
| May-15 | |
| May-15 | |
| May-15 | |
| May-15 | |
| May-14 | |
| May-13 | |
| May-13 | |
| May-13 | |
| May-13 | |
| May-13 | |
| May-12 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite