3 Must-Buy Efficient Stocks to Increase Portfolio Returns

Core Insights - Companies with favorable efficiency levels are more likely to attract investors due to their expected impressive returns, which are believed to correlate positively with price performance [1] - The efficiency ratio serves as an indicator of a company's financial health, analyzing how effectively it utilizes its assets and liabilities [1] Efficiency Ratios - Receivables Turnover: This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection of accounts receivable [2] - Asset Utilization: This ratio assesses a company's capability to convert assets into output, with higher values suggesting greater efficiency [2] - Inventory Turnover: This ratio indicates a company's ability to maintain an appropriate inventory level, with high values reflecting lower inventory relative to cost of goods sold (COGS) [3] - Operating Margin: This measure reflects a company's ability to control operating expenses, with higher values indicating more efficient management compared to peers [3] Screening Criteria - The screening process included a favorable Zacks Rank (1 Strong Buy) alongside efficiency ratios that exceed industry averages, narrowing down over 7,906 stocks to 13 [4] - The top three stocks identified through this screening process are Tilray Brands, Consol Energy, and Apogee Enterprises [4] Company Highlights - Tilray Brands (TLRY): A cannabis-lifestyle and consumer packaged goods company with an average four-quarter positive earnings surprise of 30% [5] - Consol Energy (CEIX): A producer and exporter of high-Btu bituminous thermal and crossover metallurgical coal, with an average four-quarter positive earnings surprise of 23.7% [6] - Apogee Enterprises (APOG): A leader in architectural products and services, with an average four-quarter positive earnings surprise of 19.7% [7]