For Immediate Release
Chicago, IL – March 6, 2023 – Stocks in this week’s article are UWM Holdings Corp. UWMC, Perion Network PERI, Lantheus Holdings LNTH and Goosehead Insurance GSHD.
Add These 4 Top-Ranked Liquid Stocks for Healthy Gains
Building a portfolio with stocks that have robust liquidity levels will likely work in favor of investors seeking healthy returns. Liquidity measures a company’s capability to meet its short-term debt obligations. Stocks with high liquidity levels have always been in demand, owing to their potential to provide maximum returns.
One should be careful about investing in a stock with a high liquidity level. High liquidity may also indicate that the company cannot utilize its assets competently.
Besides having sufficient cash, an investor might also consider a company’s capital deployment abilities before investing in the stock. A healthy company with favorable liquidity may be a profitable pick for one’s portfolio.
Measures to Identify Liquid Stocks
Current Ratio: It measures current assets relative to current liabilities. The ratio gauges a company’s potential to meet short- and long-term debt obligations. A current ratio — also known as the working capital ratio — below 1 indicates that the company has more liabilities than assets. However, a high current ratio does not always suggest that the company is in good financial shape. It may also suggest that the firm failed to utilize its assets significantly. Hence, a range of 1-3 is considered ideal.
Quick Ratio: Unlike the current ratio, the quick ratio — also called the ‘acid-test ratio’ or the ‘quick assets ratio’ — indicates a company’s ability to pay short-term obligations. It considers inventory, excluding the current assets relative to current liabilities. Like the current ratio, a quick ratio of more than 1 is desirable.
Cash Ratio: This is the most conservative ratio among the three, considering cash and cash equivalents and invested funds relative to current liabilities. It measures a company’s ability to meet current debt obligations using the most liquid assets. Although a cash ratio of more than 1 may suggest sound finances, a higher number may indicate inefficiency in cash utilization.
A ratio greater than 1 is always desirable but may not always represent a company’s financial condition.
Here are the four stocks that are qualified for the screen:
UWM Holdings Corp. is primarily underwrites and provides closing documentation for residential mortgage loans. It is the indirect parent company of United Wholesale Mortgage. The company is one of the leading wholesale mortgage lenders and purchase lenders in the United States. The Zacks Consensus Estimate for 2023 earnings is pegged at 24 cents per share, unchanged in the past 60 days. UWMC has a Growth Score of A and a trailing four-quarter earnings surprise of 323.6%, on average.
Perion Network is an Israel-based technology company that offers brands and publishers online advertising and search monetization solutions. The company is committed to providing data-driven execution, from high-impact ad formats to branded search and a unified social and mobile programmatic platform. The Zacks Consensus Estimate for its 2023 earnings is pegged at $2.69 per share, up 15.9% in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 31.7%, on average.
Lantheus Holdings is involved in developing, manufacturing, selling and distributing diagnostic medical imaging agents and products for diagnosing cardiovascular and other diseases. It serves hospitals, clinics, group practices, integrated delivery networks, group purchasing organizations, radiopharmacies and wholesalers. The Zacks Consensus Estimate for Lantheus Holdings’ 2023 earnings has been revised upward to $4.79 per share from $3.47 in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 50%, on average.
Goosehead Insurance operates as an insurance agency. Its product portfolio includes homeowner’s insurance, auto insurance, other personal product lines (including flood, wind and earthquake insurance), excess liability or umbrella insurance, specialty lines insurance, commercial lines insurance and life insurance. The Zacks Consensus Estimate for Goosehead’s 2023 earnings has been revised upwards to 89 cents per share from 81 cents in the past 60 days. The company has a Growth Score of A and a trailing four-quarter earnings surprise of 79.8%, on average.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2061440/add-these-4-top-ranked-liquid-stocks-for-healthy-gains
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Perion Network Ltd (PERI) : Free Stock Analysis Report
Lantheus Holdings, Inc. (LNTH) : Free Stock Analysis Report
Goosehead Insurance (GSHD): Free Stock Analysis Report
UWM Holdings Corporation (UWMC) : Free Stock Analysis Report
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