5 Must-Buy Efficient Stocks for Solid Gains Amid Volatility

Core Insights - The article emphasizes the importance of efficiency ratios as indicators of a company's financial health and operational efficiency [1] 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 a company's ability to manage inventory relative to its cost of goods sold, with higher values reflecting better inventory management [4] - Operating Margin: This ratio measures the efficiency of a company in controlling operating expenses relative to sales, with higher values indicating better expense management [5] Screening Process - A screening process was applied to identify stocks with efficiency ratios above industry averages, narrowing down from over 7,906 stocks to 18 [7] - The screening criteria included turnover ratios, asset utilization, and operating margin, along with a favorable Zacks Rank of 1 (Strong Buy) [6][8] Selected Companies - Post Holdings (POST): A consumer-packaged goods holding company with a positive earnings surprise of 21.4% [7] - BuildABear Workshop (BBW): A leading interactive retail-entertainment company with a positive earnings surprise of 21.3% [9] - Equity Bancshares (EQBK): A financial services provider with a positive earnings surprise of 17.9% [10] - Ardmore Shipping (ASC): Engaged in the ownership and operation of tankers, with a positive earnings surprise of 9.6% [11] - Sally Beauty (SBH): An international retailer of beauty supplies with a positive earnings surprise of 8.3% [12]