4 Top-Performing Liquid Stocks to Boost Portfolio Returns

Core Insights - Creating a portfolio with favorable liquidity stocks is beneficial for investors seeking healthy returns, as liquidity measures a company's ability to meet short-term debt obligations [1] - High liquidity stocks are in demand due to their potential for maximum returns, but investors should also consider a company's efficiency level [1] 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 [2] - Quick Ratio: Indicates a company's ability to pay short-term obligations, with a desirable ratio of more than 1 [2] - Cash Ratio: The most conservative measure, considering cash and cash equivalents relative to current liabilities; a ratio greater than 1 is desirable but may indicate inefficiency [3] Screening Parameters - Asset utilization is included as a screening criterion, with a ratio higher than the industry average indicating efficiency [4] - Liquidity ratios (Current, Quick, Cash) should ideally be between 1 and 3, while a Zacks Rank of 1 is required for strong buy-rated stocks [4] - A Growth Score of B or higher is preferred, as stocks with this score tend to outperform others when combined with a strong Zacks Rank [5] Company Highlights - Netflix, Inc (NFLX): As of Q1 2024, had 269.6 million paid subscribers, adding 9.33 million in the quarter; expected earnings for 2024 are $18.30 per share, up 7.3% [6] - Alphabet Inc (GOOGL): Strong momentum in cloud business; 2024 earnings estimate is $7.57 per share, up 11.8% [7] - Spotify Technology S.A. (SPOT): Revenues improved 20% year-over-year; 2024 earnings estimate is $4.78 per share, up 33.9% [8] - Vimeo, Inc (VMEO): Consensus estimate for 2024 earnings is 3 cents per share, showing improvement from previous expectations; trailing four-quarter earnings surprise of 352.7% [9]