3 Top-Ranked Efficient Stocks to Buy Amid Recession Fears

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 [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, with high values reflecting efficient 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 Criteria - The screening process included a favorable Zacks Rank of 1 (Strong Buy) alongside the efficiency ratios to identify potentially profitable stocks [6] - The criteria narrowed down over 7,906 stocks to nine, highlighting companies with efficiency ratios above industry averages [7] Selected Companies - Carriage Services (CSV): A leading provider of death care services in the U.S. with an average four-quarter earnings surprise of 27.5% [7] - Brinker International (EAT): Operates various restaurant brands, including Chili's and Maggiano's, with an average four-quarter earnings surprise of 24.7% [8] - Flexsteel Industries (FLXS): Engaged in the design and manufacture of upholstered furniture, with an average four-quarter earnings surprise of 19.8% [10]