3 Stocks Backed by High Efficiency for Solid Gains Amid Volatility

Core Insights - The article emphasizes the importance of efficiency ratios in evaluating a company's potential for profitability and stock selection [1] Efficiency Ratios - Receivables Turnover: This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices and quality customers [2] - Asset Utilization: This ratio assesses how well 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 (COGS), where a high value suggests efficient inventory management [4] - Operating Margin: This ratio reflects a company's ability to control operating expenses, with higher values indicating better expense management compared to peers [5] Screening Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) alongside the efficiency ratios to identify potentially profitable stocks [6] - Companies with efficiency ratios above industry averages were prioritized, narrowing the selection from over 7,906 stocks to six [7] Selected Companies - GIII Apparel Group: A manufacturer and distributor of apparel with an average four-quarter earnings surprise of 113.4% [7] - Bank7: A community bank holding company with an average four-quarter earnings surprise of 16.4% [8] - Amphenol: A designer and manufacturer of connectors and interconnect systems, with an average four-quarter earnings surprise of 8.5% [9]