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Zacks.com featured highlights include Sanderson Farms, SeaWorld Entertainment and Huntsman

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·5 min read
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For Immediate Release

Chicago, IL – March 2, 2022 – Stocks in this week’s article are Sanderson Farms SAFM, SeaWorld Entertainment SEAS and Huntsman HUN.

3 of the Best "Efficient Stocks" to Add to Your Portfolio

One must consider popular efficiency ratios while selecting stocks. This is because efficiency level measures a company's capability to transform available input into output and is often considered an important parameter for gauging a firm's potential to make profits. These are the efficiency ratios:

Inventory Turnover: The ratio of 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company's ability to maintain a suitable inventory position. While a high value indicates that the company has a relatively low level of inventory compared to COGS, a low value indicates that it is facing declining sales, which resulted in excess inventory.

Receivables Turnover:  This is the ratio of 12-month sales to four-quarter average receivables. It shows a company's potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio or the "accounts receivable turnover ratio" or "debtor's turnover ratio" is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.

Asset Utilization: This ratio indicates a company's capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.

Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company's ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.

Here are the top three stocks that made it through the screen:

Sanderson Farms is a poultry processing company that produces, processes, markets and distributes fresh and frozen chicken products. In addition to this, the company sells ice packs, chill packs, bulk packs and frozen chicken, in whole, cut-up and boneless form, primarily under the Sanderson Farms brand name to retailers.

Sanderson Farms has an average four-quarter earnings surprise of 46.8%. The stock carries a Zacks Rank #1.

SeaWorld Entertainment is a theme park and entertainment company operating primarily in the United States.

SeaWorld Entertainment has an average four-quarter earnings surprise of 137.2%. The stock carries a Zacks Rank #1.

Huntsman is among the world's largest manufacturers of differentiated and commodity chemical products.

Huntsman has an average four-quarter earnings surprise of 10.8%. The stock carries a Zacks Rank #2

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1875082/3-of-the-best-efficient-stocks-to-add-to-your-portfolio-now

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.

About Screen of the Week

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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
 
Sanderson Farms, Inc. (SAFM) : Free Stock Analysis Report
 
Huntsman Corporation (HUN) : Free Stock Analysis Report
 
SeaWorld Entertainment, Inc. (SEAS) : Free Stock Analysis Report
 
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