For Immediate ReleaseChicago, IL – January 29, 2026 – Stocks in this week’s article are Micron Technology, Inc. (MU) and NVIDIA Corp. (NVDA) .Up 30%+ in 2025, 2 Profitable Semiconductor Stocks to Buy in 2026Now that 2026 is underway, investors should focus on companies that generate solid returns after covering all operating and non-operating expenses. As a result, profitable businesses tend to be more attractive than the money-losing ones. To assess profitability, investors should rely on accounting ratios ...

Core Insights - Investors are encouraged to focus on companies that provide strong returns after covering all expenses, with a preference for profitable businesses over those that incur losses [2] - Micron Technology, Credo Technology, and Innovative Aerosystems are highlighted as top profitable picks due to their high net income ratios and significant upside potential, with respective share price increases of 239.1%, 114%, and 121.8% over the past year [3] Company Performance - Micron Technology has a net profit margin of 28.2%, indicating strong profitability in the memory and storage sector [9] - Credo Technology has a net profit margin of 26.6%, driven by robust demand for Ethernet and PCIe solutions [10] - Innovative Aerosystems reports a net profit margin of 18.5%, stemming from its advanced avionics design and manufacturing capabilities [11] Screening Criteria - The net income ratio is a key indicator of profitability, reflecting the percentage of net income to total sales revenues, with a higher ratio indicating better revenue generation and expense management [4] - Additional screening parameters include Zacks Rank 1 (Strong Buy), trailing 12-month sales and net income growth higher than the industry, and a strong buy percentage rating greater than 70% [5][6]

Core Insights - Investors are encouraged to focus on companies that generate strong returns after accounting for all operating and non-operating expenses, making profitable companies a smarter investment choice [1] Company Analysis - Micron Technology, Inc. (MU) has a 12-month net profit margin of 22.9%, leading the profitability screen [6][9] - Vertiv Holdings Co (VRT) has a 12-month net profit margin of 10.7%, indicating solid operating efficiency [7][9] - Corning Incorporated (GLW) has a 12-month net profit margin of 9.2%, reflecting consistent performance [10][9] Profitability Metrics - The net income ratio measures a company's profitability by reflecting the percentage of net income to total sales revenues, with a higher ratio indicating better revenue generation and expense management [3] - Additional screening parameters include Zacks Rank equal to 1, trailing 12-month sales and net income growth higher than the industry, and a strong buy percentage rating greater than 70% [4][5]

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]

Core Insights - Investors should prioritize companies that demonstrate strong profitability after accounting for all expenses, favoring profitable firms over those with losses [1] - NVIDIA Corporation, Broadcom Inc., and ServiceNow, Inc. are identified as top investment picks for the second half of the year due to their high net income ratios [2] Net Income Ratio - The net income ratio is a critical measure of a company's profitability, indicating the percentage of net income relative to total sales revenues, with a higher ratio suggesting effective revenue generation and expense management [3] Screening Parameters - Additional criteria for identifying potential investment winners include: - Zacks Rank of 3 or lower, allowing only 'Strong Buys', 'Buys', and 'Holds' [4] - Trailing 12-month sales and net income growth exceeding industry averages [4] - Trailing 12-month net income ratio higher than industry benchmarks [5] - A strong buy percentage rating greater than 70% [5] - These parameters narrowed the stock universe from over 7,685 to just 11 candidates [5] Company Highlights - **NVIDIA Corporation (NVDA)**: - Provides solutions for graphics, computing, and networking globally - Achieved a 12-month net profit margin of 51.7% and holds a Zacks Rank of 3 [5][7] - **Broadcom Inc. (AVGO)**: - Develops semiconductor devices and infrastructure software solutions worldwide - Reports a 12-month net profit margin of 22.6% and also holds a Zacks Rank of 3 [6][7] - **ServiceNow, Inc. (NOW)**: - Offers cloud-based solutions for digital workflows across various regions - Has a 12-month net profit margin of 13.8% and maintains a Zacks Rank of 3 [8][7]

Core Insights - Investors are encouraged to focus on companies that deliver strong returns after accounting for all operating and non-operating expenses, emphasizing the importance of profitability over loss-making firms [1] Company Analysis - Intuit Inc. (INTU), Dave Inc. (DAVE), and Nova Ltd. (NVMI) are highlighted as top investment picks for the second half of the year due to their high net income ratios [2] - The net income ratio is a critical measure of a company's profitability, indicating the percentage of net income relative to total sales revenues, with higher ratios suggesting better revenue generation and expense management [3] - The 12-month net profit margins for the selected companies are as follows: NVMI at 28.5%, INTU at 19.1%, and DAVE at 13.8%, all demonstrating strong sales and income growth compared to industry averages [9][10] Screening Criteria - Additional screening parameters include: - Zacks Rank of 1, indicating a strong buy recommendation based on historical performance [4] - Trailing 12-month sales and net income growth exceeding industry averages [5] - A net income ratio higher than the industry average, reflecting solid profitability [5] - A strong buy percentage rating greater than 70%, indicating a majority of broker recommendations are positive [5]