4 Stocks With Solid Net Profit Margins to Boost Portfolio Returns

Zacks highlights four stocks with strong net profit margin screens and bullish growth signals: Nutex Health’s 2026 EPS estimate was revised up 32.5% to $30.11 and last-quarter earnings beat by 82.13%, while RCM Technologies’ 2026 EPS estimate rose 13.3% to $3.07 with a 51.85% beat. Remitly Global’s 2026 EPS estimate increased 13.8% to $1.57 with a 268.97% earnings beat, and Belden’s 2026 EPS estimate was raised 5.7% to $8.69 with a 14.71% beat. Overall tone is selectively bullish (Zacks Rank #1–2, VGM A/B) but this is more of an analyst screening update than a company-specific catalyst.

Analysis

The important signal here is not “high net margin” in isolation; it is a screen for operating leverage plus estimate momentum, which tends to attract factor flows in the next 1-4 weeks. That favors RELY and BDC more than the others because their earnings quality is easier to underwrite through customer growth and mix, while the smaller names can be dominated by accounting noise and low-base beats.

RELY’s upside is mainly competitive: every incremental improvement in take rate, repeat usage, or operating efficiency can pressure legacy remittance players like WU and MGI rather than higher-multiple fintechs. BDC looks more durable, but its margins are still a lagging indicator of industrial/enterprise capex; if orders soften, the market will stop paying for “quality” and reprice it with the cycle.

The contrarian risk is that NUTX and RCMT may be screening well because of non-recurring items, reimbursement timing, or project mix rather than a durable step-up in economics. If next-quarter free cash flow or guidance does not confirm the estimate revisions, the move can unwind fast; NUTX in particular feels more like a volatility trade than a multi-quarter compounding story.

Key Decisions for Investors

• Long RELY / short WU for 1-3 months: play the cleaner margin-plus-estimate-revision story versus a legacy remittance model; target 10-15% relative outperformance, invalidated if RELY’s take rate or volume growth decelerates next print.
• Buy BDC on pullbacks versus XLI as a 1-2 quarter relative-value trade: Belden should hold up if industrial networking and automation capex remain resilient, but cut the position if PMI/orders roll over.
• Fade NUTX strength rather than chase it: if the stock gaps higher on the screen, treat it as a tactical short or very small call-spread position only, because any disappointment in cash conversion or reimbursement can trigger a sharp reversal.
• RCMT is a watchlist name, not a conviction buy: go long only if the next earnings release confirms backlog and margin expansion; otherwise expect estimate revisions to be mean-reverting in a cyclical staffing/service model.