Core Insights - Building a portfolio with stocks that have robust liquidity levels is likely to yield healthy returns for investors [1] - High liquidity stocks are in demand due to their potential for maximum returns, but caution is advised as high liquidity may also indicate inefficient asset utilization [2] 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 considered 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, with a ratio higher than the industry average indicating efficiency [7] - Stocks are screened for liquidity ratios between 1 and 3 and asset utilization above the industry average, ensuring they have solid growth potential [8] Selected Stocks - Four stocks identified for strong liquidity and asset efficiency are Peloton Interactive, Remitly Global, Newmont Corporation, and Zumiez [9] - Each of these stocks has higher asset utilization than their industry average and solid growth attributes [9] Company Profiles - Peloton Interactive (PTON): Operates as an interactive fitness platform with nearly 6 million members, focusing on becoming a full-spectrum wellness platform and expanding its global footprint [10][11] - Remitly Global (RELY): Offers digital financial and remittance services, reporting revenues of $411.9 million for Q2 2025, up 34% year over year [13][15] - Newmont Corporation (NEM): One of the largest gold producers, with Q2 revenues of approximately $5.32 billion, up 20.8% from the prior year [16][18] - Zumiez Inc. (ZUMZ): A specialty retailer with Q2 sales of $214.3 million, surpassing estimates and showing a 1.9% increase from the prior year [19][20]
Bet on These 4 Top-Performing Liquid Stocks for Robust Returns