Core Insights - Investors are encouraged to focus on companies that generate strong returns after covering all expenses, emphasizing the importance of profitability over loss-making firms [1] - NVIDIA, Vertiv, and Mastercard are highlighted as top investment picks for the year due to their high net income ratios [2] Profitability Metrics - The net income ratio is a key indicator of a company's profitability, representing the percentage of net income relative to total sales revenues, with a higher ratio indicating better revenue generation and expense management [3] - Additional screening parameters include Zacks Rank, trailing 12-month sales and net income growth, and a strong buy percentage rating, which help identify potential winning stocks [4][5] Company Profiles - NVIDIA: Engages in graphics, computing, and networking solutions globally, with a 12-month net profit margin of 51.7% and a Zacks Rank of 3 (Hold) [5] - Vertiv: Provides infrastructure technologies for data centers, achieving a 12-month net profit margin of 8.9% and a Zacks Rank of 2 (Buy) [6] - Mastercard: Offers global payment processing services, with a 12-month net profit margin of 44.9% and a Zacks Rank of 2 [7]
NVIDIA and 2 Profitable Stocks to Keep for 2025