DXP Enterprises(DXPE) ZACKS·2025-01-17 14:01Core 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 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 144.5 million, supported by a strong financial profile and focus on core markets [18][19]