4 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 performance [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, where a high value reflects efficient inventory management [4] - Operating Margin: This ratio measures the efficiency of a company in controlling operating expenses, with higher values indicating better expense management compared to peers [5] Screening Criteria - The screening process identified stocks with efficiency ratios above industry averages, narrowing down from over 7,906 stocks to eight candidates [7] - A favorable Zacks Rank of 1 (Strong Buy) was also included in the screening criteria to enhance profitability [6] Selected Stocks - Quad Graphics (QUAD): Specializes in print and multichannel solutions, with an average four-quarter earnings surprise of 71.8% [7] - ONESPAN (OSPN): Develops security software and e-signature solutions, achieving an average four-quarter earnings surprise of 38.6% [8] - ChampionX (CHX): Provides chemistry solutions and technologies for oil and gas production, with an average four-quarter earnings surprise of 9% [9] - BancFirst (BANF): A bank holding company offering commercial banking services, with an average four-quarter earnings surprise of 7% [10]