NVIDIA & 2 More Profitable S&P 500 Stocks to Buy Before 2026

As we near 2026, investors should seek companies that generate strong returns after covering all operating and non-operating expenses. Therefore, it’s wise to invest in a profitable company rather than one that is losing money. Here, we use accounting ratios to evaluate a company’s profitability. Among the various profitability ratios, we select the most effective and widely used metric to assess a firm’s bottom-line performance. To that end, NVIDIA Corporation NVDA, Micron Technology, Inc. MU, and Seagate Technology Holdings plc STX have been selected as the top picks from the broader S&P 500 for their high net income ratios.Net Income Ratio Explained The net income ratio gives us the exact profitability level of a company. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate ample revenues and successfully manage all business functions.Screening Parameters Using Research Wizard:The net income ratio is not the only indicator of future winners. So, we have added a few more criteria to arrive at a winning strategy.Zacks Rank equal to 1 (Only Zacks’ ‘Strong Buys’ are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off.) You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Trailing 12-Month Sales and Net Income Growth Higher than X Industry: Stocks that have witnessed higher-than-industry sales and net income growth in the past 12 months are positioned to perform well.Trailing 12-Month Net Income Ratio Higher than X Industry: A high net income ratio indicates a company’s solid profitability.Percentage Rating Strong Buy greater than 70: This indicates that 70% of the current broker recommendations for the stock are Strong Buy.These few parameters have narrowed the universe of more than 7,685 stocks to only 26.Here are three of the 26 stocks that qualified for the screening:NVIDIANVIDIA is a worldwide provider of graphics, computing and networking solutions. NVDA’s 12-month net profit margin is 53% (read more: Top 3 AI Stocks, Including NVIDIA to Buy Now for 2026 Growth). MicronMicron manufactures and sells memory and storage products worldwide. MU’s 12-month net profit margin is 28.2% (read more: Micron's Blowout Earnings: The Best AI Stock for 2026?). Seagate Technology Seagate Technology provides data storage technology and infrastructure solutions worldwide. The 12-month net profit margin of STX is 17.9%.  You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard todayDisclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Seagate Technology Holdings PLC (STX): Free Stock Analysis Report Micron Technology, Inc. (MU): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks