Buy These 4 Stocks With Solid Net Profit Margins to Enhance Return

Zacks Investment Research screened for stocks with solid net profit margins, EPS growth, and bullish analyst sentiment, identifying Nomad Foods (NOMD), Natural Gas Services Group (NGS), Dave Inc. (DAVE), and Adtalem Global Education (ATGE) as promising picks. All four companies have seen upward revisions to their 2025 EPS estimates and hold high Zacks Ranks and strong VGM Scores, suggesting potential upside. These companies' ability to translate sales into profits, as reflected in their net profit margins, is a key factor attracting investors.

Analysis

The Zacks Investment Research article details a quantitative stock screening methodology prioritizing companies with strong net profit margins, positive earnings per share (EPS) growth, and bullish analyst sentiment. This screen identified four specific companies: Nomad Foods (NOMD), Natural Gas Services Group (NGS), Dave Inc. (DAVE), and Adtalem Global Education (ATGE). All four have recently experienced upward revisions in their 2025 EPS estimates, signaling growing analyst confidence. Specifically, Nomad Foods' 2025 EPS estimate increased by 8 cents to $2.07; Natural Gas Services' saw an 18.6% rise to $1.40; Dave Inc.'s estimate climbed 3.9% to $8.74; and Adtalem Global Education's fiscal 2025 EPS estimate was revised up by 4.8% to $6.52. These firms also boast high Zacks Ranks (1 for NOMD, NGS, DAVE; 2 for ATGE) and strong VGM Scores (A or B), indicative of potential upside. Their track record of consistently surpassing earnings consensus – with average surprises of 3.2% for NOMD, 34.8% for NGS, an exceptional 274.5% for DAVE, and 18.4% for ATGE – further highlights their operational execution. The article underscores net profit margin as a critical measure of converting sales to profit, though it also acknowledges the necessity of industry-specific context and awareness of differing accounting practices when evaluating this metric.

Key Decisions for Investors

• Investors focused on companies demonstrating robust profitability and positive earnings trajectory should consider conducting further due diligence on Nomad Foods, Natural Gas Services Group, Dave Inc., and Adtalem Global Education, given their strong screening metrics and recent upward EPS revisions.
• While the quantitative signals are positive, it is prudent to supplement this screen with qualitative research into each company's specific business model, competitive landscape, and the sustainability of their net profit margins, particularly considering the noted limitations of the metric across diverse industries.