NVIDIA and 2 Profitable Stocks to Keep for 2025

Investors should seek companies that produce 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 various profitability ratios, we choose the most effective and widely used metric to assess a firm’s bottom-line performance. To that end, NVIDIA Corporation NVDA, Vertiv Holdings Co VRT, and Mastercard Incorporated MA have been selected as top picks for the year 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 72. Here are three of the 72 stocks that qualified for the screening: NVIDIA NVIDIA offers solutions for graphics, computing, and networking in the United States, Singapore, Taiwan, China, Hong Kong, and around the world. The 12-month net profit margin of NVDA is 51.7%. NVIDIA has a Zacks Rank #3 (Hold) (read more: Is SMCI Stock the Next NVIDIA, and Is It Worth Buying?). Vertiv  Vertiv provides infrastructure technologies and services for global data centers. The 12-month net profit margin of VRT is 8.9%. Vertiv has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. Mastercard Mastercard offers payment processing services globally, including in the United States. The 12-month net profit margin of MA is 44.9%. Mastercard has a Zacks Rank #2.  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. Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely 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 Mastercard Incorporated (MA): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Vertiv Holdings Co. (VRT): 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