4 Solid Net Profit Margin Stocks to Strengthen Your Portfolio

Core Insights - The primary purpose of a business is to generate profits for reinvestment or shareholder rewards, with net profit margin being a key metric for measuring profitability [1][5][19] Company Analysis - Virco Manufacturing designs, produces, and distributes quality furniture for contract and education markets globally, holding a Zacks Rank 1 and a VGM Score of A [4] - HNI Corporation is a leading global provider and designer of office furniture, currently holding a Zacks Rank 2 and a VGM Score of A [26] - Great Lakes Dredge & Dock is the largest provider of dredging services in the U.S., with a Zacks Rank of 2 and a VGM Score of A [27] - Teekay Tankers specializes in international marine transportation of crude oil, currently holding a Zacks Rank of 2 and a VGM Score of B [28] Financial Metrics - A higher net profit margin indicates a company's efficiency in converting sales into actual profits, providing insights into operational strength and cost control [5][6][8] - The Zacks Consensus Estimate for Virco Manufacturing's fiscal 2025 earnings has increased by 16.3% to $1.86 per share, with an average surprise of 74.9% over the last four quarters [13] - HNI's 2024 earnings estimate remains at $3.10 per share, with an average surprise of 67.5% in the last four quarters [14] - Great Lakes Dredge & Dock's 2024 earnings estimate is unchanged at 72 cents per share, with an average surprise of 184.3% [15] - Teekay Tankers' 2024 earnings estimate has been revised upward by 3 cents to $14.70 per share, with an average negative surprise of 6.3% [16] Investment Strategy - Stocks with a Zacks Rank of 1 or 2 and a VGM Score of A or B are identified as having the best upside potential [12][24] - The screening process identified four stocks—Virco Manufacturing, HNI, Great Lakes Dredge & Dock, and Teekay Tankers—from a larger pool of 20 stocks [25]