Core Insights - Investors seeking high returns should consider stocks with robust liquidity levels, as this promotes business growth and indicates a company's ability to meet debt obligations [1][2] - Four top-ranked stocks recommended for portfolio inclusion are DXP Enterprises, Inc. (DXPE), Ubiquiti Inc. (UI), HubSpot, Inc. (HUBS), and EverQuote, Inc. (EVER) [2][10] Liquidity Measures - **Current Ratio**: Measures current assets relative to current liabilities; a ratio below 1 indicates more liabilities than assets, while a range of 1-3 is ideal [4] - **Quick Ratio**: Indicates a company's ability to pay short-term obligations, with a desirable ratio of more than 1 [5] - **Cash Ratio**: The most conservative measure, focusing on cash and cash equivalents relative to current liabilities; a ratio greater than 1 is desirable but may indicate inefficiency [6] Screening Parameters - Asset utilization is included as a screening criterion, measuring total sales over the last 12 months against the average total assets; a higher ratio than the industry average indicates efficiency [7] - Stocks are further screened using a proprietary Growth Style Score to ensure they have solid growth potential [8] - Stocks must have liquidity ratios between 1 and 3, asset utilization above the industry average, a Zacks Rank of 1, and a Growth Score of A or B to qualify [9] Company Highlights - **DXP Enterprises, Inc. (DXPE)**: Revenue increased by 12.8% year-over-year to $472.9 million, benefiting from acquisitions and moderating inflation [11][12] - **Ubiquiti Inc. (UI)**: Strong first-quarter fiscal 2025 results with earnings estimates of $7.30 per share, driven by growth in the Enterprise Technology segment [14][15] - **HubSpot, Inc. (HUBS)**: Focus on expanding customer base and product updates, with earnings estimates of $8.00 per share for 2024 [16][17] - **EverQuote, Inc. (EVER)**: Total revenues increased by 163% year-over-year to $144.5 million, supported by a strong financial profile and focus on core markets [18][19]

DXP Enterprises (DXPE) closed at $91.38 in the latest trading session, marking a +0.43% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.86%, and the technology-dominated Nasdaq saw a decrease of 0.38%.Heading into today, shares of the industrial products supplier had gained 14.31% over the past month, outpacing the Industrial Products sector's loss of 8.81% and the S&P 500's loss of 2.2% in that time.The invest ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, invest ...

Most of us have heard the dictum "the trend is your friend." And this is undeniably the key to success when it comes to short-term investing or trading. But it isn't easy to ensure the sustainability of a trend and profit from it.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate revisions, etc. -- ...

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time.Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phase ...

As we edge closer to the new year, investors may want to pay attention to several industrial products sector stocks that look poised to have a strong fiscal 2025.  Now appears to be an ideal time to buy these top-rated industrial products stocks based on the trend of positive earnings estimate revisions.  DXP Enterprises - DXPE Zacks Rank #1 (Strong Buy) With its stock hovering near 52-week highs we’ll start with DXP Enterprises (DXPE) , a global provider of pumping solutions, supply chain services, and mai ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, December 16th:DXP Enterprises (DXPE) : This leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico and Dubai, has a Zacks Rank #1(Strong Buy), and witnessed the Zacks Consensus Estimate for its current year earnings increasing 14.3% over the last 60 days.DXP Enterprises’ shares gained 52.1% over the la ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Steven Cress Background and Expertise - Steven Cress is the VP of Quantitative Strategy and Market Data at Seeking Alpha, responsible for creating the platform's quantitative stock rating system and analytical tools [1] - He is the Founder and Co-Manager of Alpha Picks, a systematic stock recommendation tool aimed at helping long-term investors build high-quality portfolios [1] - Cress has over 30 years of experience in equity research, quantitative strategies, and portfolio management, making him a seasoned expert in investment topics [4] Professional Achievements and Contributions - Cress founded CressCap Investment Research, which was acquired by Seeking Alpha in 2018 for its exceptional quantitative analysis and market data capabilities [3] - He previously founded Cress Capital Management, a quantitative hedge fund, and held leadership roles at Morgan Stanley and Northern Trust [3] - His work focuses on eliminating emotional biases in investment decisions through data-driven approaches and sophisticated algorithms [2] Tools and Systems Developed - Cress developed the Seeking Alpha Quant Rating system, which interprets data to provide investment insights and save time for users [1] - He created a daily updated grading system for stock trading recommendations, simplifying complex investment research [2]

Sales Performance - For the nine months ended September 30, 2024, DXP reported total sales of approximately $1,331.1 million, an increase of 4.7% compared to $1,271.6 million for the same period in 2023[89]. - Organic sales for the three months ended September 30, 2024, were $444.4 million, up 7.0% from $415.4 million in the same period of 2023[89]. - The Service Centers segment generated sales of $911.8 million for the nine months ended September 30, 2024, compared to $914.1 million in 2023, reflecting a slight decrease[89]. - The Innovative Pumping Solutions segment saw sales increase to $225.4 million for the nine months ended September 30, 2024, up from $158.4 million in 2023, representing a growth of 42.2%[89]. - The Supply Chain Services segment reported sales of approximately $193.9 million for the nine months ended September 30, 2024, a decrease of 2.6% compared to $199.0 million in 2023[97]. - Sales for the three months ended September 30, 2024, increased by $53.7 million, or 12.8%, to approximately $472.9 million from $419.2 million for the prior year's corresponding period[100]. - The Service Centers segment saw sales increase by $22.4 million, or 7.6%, primarily due to job timing and a recent acquisition contributing $13.0 million[101]. - The Innovative Pumping Solutions segment experienced a sales increase of $30.9 million, or 52.3%, driven by project-related work and $15.6 million from recent acquisitions[102]. - For the nine months ended September 30, 2024, sales increased by $59.6 million, or 4.7%, to approximately $1,331.1 million, with the Innovative Pumping Solutions segment contributing $67.0 million to this growth[108]. Profitability and Expenses - Gross profit for the three months ended September 30, 2024, was $146.1 million, resulting in a gross profit margin of 30.9%, compared to $125.6 million and 29.9% in the same period of 2023[89]. - Adjusted EBITDA for the three months ended September 30, 2024, was $52.4 million, with an adjusted EBITDA margin of 11.1%, compared to $44.0 million and 10.5% in the same period of 2023[89]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $141.0 million, up from $132.4 million in the prior year, reflecting a growth of approximately 6.4%[121]. - Selling, general and administrative expenses (SG&A) for the three months ended September 30, 2024, increased by $16.8 million, or 18.7%, to $106.5 million, mainly due to higher payroll and related expenses[104]. - SG&A for the nine months ended September 30, 2024, increased by approximately $28.0 million, or 10.2%, to $301.7 million, reflecting increased business activity[113]. - Operating income for the third quarter of 2024 increased by $3.8 million to $39.6 million, attributed to the increase in sales during the period[105]. Cash Flow and Liquidity - Free cash flow for the three months ended September 30, 2024, was $24.4 million, down from $38.3 million in the same period of 2023[89]. - The Company generated $70.1 million in cash from operating activities during the nine months ended September 30, 2024, compared to $63.8 million in the prior year, marking an increase of 3.9%[128]. - Free Cash Flow for the three months ended September 30, 2024, was $24.4 million, compared to $38.3 million in the same period of 2023, indicating a decrease of 36.3%[123]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $165.1 million, significantly higher than $16.0 million in the same period of 2023, primarily due to acquisition activity[130]. - The Company had available cash of $35.0 million and credit facility availability of $131.6 million as of September 30, 2024[125]. - The Company expects to maintain adequate funding and liquidity to meet normal working capital needs over the next twelve months[139]. Debt and Financial Ratios - Interest expense for the third quarter of 2024 rose by $3.0 million, primarily due to an additional $125.0 million borrowed on the Term Loan[106]. - The Fixed Charge Coverage Ratio as of September 30, 2024, was 1.72 to 1.00, indicating compliance with financial covenants[133]. - The Secured Leverage Ratio as of September 30, 2024, was 2.54 to 1.00, below the required threshold of 5.50 to 1.00[135]. Future Outlook - DXP anticipates consistent demand across all end markets moving forward, supported by price increases from vendors and acquisition activities[96]. - Recent acquisitions contributed approximately $40.5 million in sales within the water and wastewater markets for the nine months ended September 30, 2024[96]. - The Company plans to pursue additional acquisition targets, primarily funded through cash flows from operations and borrowings[138]. - The effective tax rate for the three months ended September 30, 2024, was 11.1%, a decrease from 26.3% in the prior year, influenced by research and development tax credits[107]. - The effective tax rate for the nine months ended September 30, 2024, was 21.1%, down from 26.8% in the prior year, also due to research and development tax credits[116]. - Net income attributable to DXP Enterprises, Inc. for the three months ended September 30, 2024, was $21.1 million, compared to $16.2 million for the same period in 2023, representing a 30% increase[121].