5 Stocks Backed by High Efficiency for Solid Gains Amid Volatility

Core Insights - The article emphasizes the importance of efficiency ratios in evaluating a company's potential for profitability and stock selection [1][6]. Efficiency Ratios - Receivables Turnover: This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices [2]. - Asset Utilization: This ratio assesses how well a company converts its assets into sales, with higher values suggesting greater efficiency [3]. - Inventory Turnover: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, with high values reflecting efficient inventory management [4]. - Operating Margin: This ratio measures the proportion of revenue that remains after covering operating expenses, with higher values indicating better expense management [5]. Screening Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) and required that the efficiency ratios exceed industry averages, narrowing the stock universe from over 7,906 to 14 [6]. Selected Stocks - Amneal Pharmaceuticals (AMRX): An integrated specialty pharmaceutical company with a four-quarter earnings surprise of 57.1% [7]. - Cronos Group (CRON): Engages in investments in licensed medical marijuana firms, with an average earnings surprise of nearly 50% [8]. - Carriage Services (CSV): A leading provider of death care services in the U.S., showing a 36.3% earnings surprise [8]. - Business First Bancshares (BFST): Provides banking services to small and midsize businesses, with a 10.6% earnings surprise [9]. - Amphenol (APH): Designs and manufactures connectors and related products, with a 7.7% earnings surprise [10].