NVIDIA & 2 Profit-Rich Stocks to Watch as Nasdaq Hits Milestone

The Nasdaq broke records on Monday, reaching an all-time intraday high. The tech-heavy index also closed the trading session at a record high, finishing at 22,788.98. Hence, it’s judicious for astute investors to keep an eye on companies listed on the Nasdaq that deliver strong returns after accounting for both operating and non-operating expenditures. Here, we use accounting ratios to assess a company’s profitability. Of the various available profitability ratios, we focus on the most effective and widely recognized metric to evaluate a firm’s bottom-line performance.To that end, NVIDIA Corporation NVDA, Broadcom Inc. AVGO and ACM Research, Inc. ACMR have been selected as top profit-packed stocks to watch due to their high net income ratios. Net Income Ratio 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 less than or equal to 3 (Only Zacks’ ‘Strong Buys’, ‘Buys’, and ‘Holds’ 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.)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 74.Here are three of the 74 stocks that qualified for the screening:NVIDIA NVIDIA provides solutions for graphics, computing, and networking across the United States and globally. NVIDIA’s shares recently gained strength after the company announced its intention to invest $100 billion in OpenAI, thereby maintaining its dominance in the global artificial intelligence (AI) race.The 12-month net profit margin of NVDA is 52.4%. NVIDIA has a Zacks Rank #3 (Hold) (read more: Oracle Vs. NVIDIA: Which AI Powerhouse Should You Buy Now?). Broadcom A wide range of semiconductor devices and infrastructure software solutions is being developed and supplied by Broadcom across the globe. The 12-month net profit margin of AVGO is 31.6%. Broadcom has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.ACM Research ACM Research, along with its subsidiaries, develops, manufactures and sells capital equipment on a global scale. The 12-month net profit margin of ACMR is 13.8%. ACM Research has a Zacks Rank #3.  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 today.Disclosure: 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. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>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 NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report ACM Research, Inc. (ACMR): 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