Highlights InterDigital, Ardmore Shipping, Inspired Entertainment and Global Ship Lease were featured on Zacks.com
For Immediate Release
Chicago, IL – May 26, 2023 – Stocks featured in this week’s article are InterDigital IDCC, Ardmore Shipping Corp. ASC, Inspired Entertainment INSE and Global Ship Lease GSL.
4 stocks with solid net profit margins to boost portfolio returns
Investors eye companies that regularly generate profits. To measure the size of profits, there is no better metric than net profit margin.
A higher net margin underscores a company’s efficiency in converting sales into actual profits. In addition, this metric provides insight into how well a company is being run and the headwinds it is facing. InterDigital, Ardmore Shipping Corp., Inspired Entertainment and Global Ship Lease all have solid net profit margins.
Net Profit Margin = Net Profit/Revenue * 100.
Simply put, net income is the amount a company retains after deducting all costs, interest, depreciation, taxes, and other expenses. In fact, net profit margin can be an important reference point for measuring the strength of a company’s operations and its cost control measures.
Also, higher net profit is essential for rewarding stakeholders. Additionally, the strength of the metric attracts investors and attracts well-trained employees who ultimately drive business value.
In addition, a higher net profit margin compared to its peers gives the company a competitive advantage.
Advantages and disadvantages
Net profit margin helps investors gain clarity about a company’s business model in terms of pricing, cost structure, and production efficiency. Therefore, all investor classes prefer a high net profit margin.
However, the net profit margin as an investment criterion also has some pitfalls. The key figure varies greatly from industry to industry. While net income is a key investment measurement metric in traditional industries, it’s not as important for technology companies.
In addition, the different accounting treatment of various items – particularly non-cash expenses such as depreciation and stock-based compensation – makes comparison a daunting task.
Additionally, higher interest expense typically weighs on net income for companies that prefer to grow with debt rather than equity. In such cases, the measure becomes ineffective in analyzing company performance.
Here we discuss our four picks from the 40 stocks that qualified for selection:
InterDigital is a pioneer in advanced mobile technologies that enable wireless communication and functionality. The company designs and develops a wide range of advanced technology solutions used in digital cellular and wireless 3G, 4G and IEEE 802 related products and networks. The stock currently has a Zacks rank of 1 and a VGM score of A.
The Zacks consensus estimate for InterDigital’s 2023 earnings has been revised up 118% over the past 30 days to $6.04 per share. IDCC beat the Zacks consensus estimate in each of the last four quarters, with an average surprise of 170.9%.
Ardmore Shipping is engaged in the ownership and operation of product and chemical tankers. It offers shipping services to its customers through voyage charters, commercial pools and time charters. The Company provides global ocean transportation of petroleum products and chemicals to oil majors, national oil companies, oil and chemical traders and chemical companies. It currently has a Zacks rank of 1 and a VGM score of A.
The Zacks consensus estimate for Ardmore Shipping’s 2023 earnings has increased 31 cents over the past 30 days to $2.79 per share. ASC beat the Zacks consensus estimate three times in the last four quarters and equaled it once, with an average surprise of 3.5%.
Inspired Entertainment is a gaming technology company. It delivers virtual sports, mobile gaming and server-based gaming systems to regulated lottery, betting and gaming operators. The company currently has a Zacks rank of #1 and a VGM score of A.
The Zacks consensus estimate for INSE’s 2023 earnings has been revised up to $1.10 per share from 96 cents over the past 30 days. Inspired Entertainment beat the Zacks consensus estimate three times in the last four quarters but missed once, with an average surprise of 28%.
Global Ship Lease is a fast growing container ship charter owner. Global Ship Lease was incorporated in the Marshall Islands and began operations in December 2007 with the business of owning and chartering out container ships on long-term, fixed-rate charters to world-class container liner companies. The company currently has a Zacks Rank of 1 and a VGM Score of B.
The Zacks consensus estimate for Global Ship Lease’s earnings in 2023 has been revised up 36 cents over the past 30 days to $8.87 per share. GSL beat the Zacks consensus estimate in each of the last four quarters, with an average surprise of 15.6%.
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For the rest of this Screen of the Week article, visit Zacks.com at: https://www.zacks.com/stock/news/2099477/4-solid-net-profit-margin-stocks-to-boost- portfolio -returns
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own securities or have sold short and/or hold long and/or short positions in options mentioned in this material. An affiliated investment advisory firm may own securities or have sold short and/or long and/or short positions in options mentioned in this material.
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Strong stocks that should be in the news
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Contact: Jim Giaquinto
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5 shares will double
Each of these stocks was handpicked by a Zacks expert and voted the #1 most popular stock to gain +100% or more in 2021. Previous recommendations increased by +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report fly under Wall Street’s radar, which presents a great opportunity to start from the ground up.
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InterDigital, Inc. (IDCC): Free Stock Research Report
Global Ship Lease, Inc. (GSL): Free Stock Research Report
Ardmore Shipping Corporation (ASC): Free Stock Research Report
Inspired Entertainment, Inc. (INSE): Free Stock Research Report
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