
Core Insights - The article emphasizes the importance of efficiency levels in assessing a company's potential for profitability and price performance [1] - It highlights specific efficiency ratios that can be used to evaluate companies, including Receivables Turnover, Asset Utilization, Inventory Turnover, and Operating Margin [2][3][4][5] Efficiency Ratios - Receivables Turnover: This ratio measures a company's ability to extend credit and collect debts, with a higher ratio indicating better performance [2] - Asset Utilization: This ratio assesses how effectively a company converts its assets into sales, with higher values suggesting greater efficiency [3] - Inventory Turnover: This ratio indicates how well a company manages its inventory relative to its cost of goods sold, with higher values reflecting better inventory management [4] - Operating Margin: This ratio evaluates a company's ability to control operating expenses, with higher values indicating more efficient expense management [5] Screening Criteria - The article mentions that companies were screened based on the aforementioned efficiency ratios being greater than industry averages, narrowing down the selection to eight stocks [7] - A favorable Zacks Rank of 1 (Strong Buy) was also included in the screening criteria to enhance profitability [6] Selected Companies - Microvast (MVST): A technology company specializing in lithium-ion battery solutions, with an average four-quarter earnings surprise of 88.8% [8] - Companhia de saneamento Basico Do Estado De Sao Paulo Sabesp (SBS): Provides public water and sewage services in Sao Paulo, with an average four-quarter earnings surprise of 30.8% [8] - CarGurus (CARG): An online automotive marketplace with an average four-quarter earnings surprise of nearly 11.8% [9] - AptarGroup (ATR): A global supplier of innovative packaging solutions, with an average four-quarter earnings surprise of nearly 7.3% [9]