Nvidia(US:NVDA) ZACKS·2024-12-16 13:31Core Viewpoint - The S&P 500 is expected to experience a Santa Rally and continue its upward trend into the new year, driven by the potential election win of Donald Trump and anticipated interest rate cuts, prompting investors to focus on profitable stocks like NVIDIA and Royal Caribbean Cruises [1] Group 1: Net Income Ratio - The net income ratio is a key indicator of a company's profitability, reflecting the percentage of net income to total sales revenues, with a higher ratio indicating better revenue generation and expense management [2] - NVIDIA Corporation has a 12-month net profit margin of 55.7% and an expected earnings growth rate of 40.8% for the next year, making it an attractive investment [7][6] - Royal Caribbean Cruises has a 12-month net profit margin of 16.2% and an expected earnings growth rate of 23.8% for the next year, positioning it as a solid buy [9] Group 2: Screening Parameters - Additional screening parameters include a Zacks Rank of less than or equal to 2, trailing 12-month sales and net income growth higher than the industry, and a percentage rating of Strong Buy greater than 70% [3][4] - These parameters have narrowed the stock universe from over 7,685 to only 34 qualifying stocks [5] Group 3: Company Highlights - NVIDIA leads in visual computing technologies and has shown promising results in its data center segment, contributing to its strong investment appeal [6] - Royal Caribbean Cruises benefits from strong demand for cruising, increased booking numbers, and a growing loyal customer base, enhancing its investment attractiveness [9]