Zacks.com featured highlights from Oxford Industries, The Chef’s Warehouse and Sanderson Farms

For immediate release

Chicago, IL – July 25, 2022 – The stocks in this week’s article are Oxford Industries OXM, The Chef’s Warehouse CHEF and Sanderson Farms SAFM.

3 of the most effective stocks to increase your portfolio returns

Companies with promising levels of efficiency are likely to be on investors’ radar, regardless of market conditions. Indeed, a company with a favorable level of efficiency is expected to deliver impressive returns as it is believed to be positively correlated with the price performance of the company. In particular, efficiency, which is the ability to transform inputs into outputs, is a potential indicator of a company’s financial health.

However, it sometimes becomes difficult to measure the level of efficiency of a company. This is why popular efficiency ratios should be considered when selecting stocks. These efficiency ratios are:

Stock rotation: The ratio of 12-month cost of goods sold (COGS) to four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company’s ability to maintain a proper 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 the company is facing declining sales, which has resulted in excess inventory.

Receivables turnover: This is the ratio between sales over 12 months and average receivables over four quarters. It shows the potential for a business to extend its credit and collect debts based on that credit. A high receivables turnover ratio or “debtors turnover ratio” or “debtors turnover ratio” is desirable because it shows that the company is capable of collecting its debts or that it has quality customers.

Use of assets: This ratio indicates a company’s ability to convert assets into production and is therefore a widely known measure of the level of efficiency. It is calculated by dividing total sales over the last 12 months by the average of the last four quarters of total assets. Like the ratios above, high asset utilization can indicate that a business is efficient.

Operating margin: This measure of efficiency is the ratio between the operating result for the last 12 months and the turnover for the same period. It measures a company’s ability to control its operating expenses. Therefore, a high value of the ratio may indicate that the company manages its operating expenses more effectively than its peers.

Here are the top three actions that crossed the screen:

Oxford Industries is an apparel company that designs, sources, markets and distributes products bearing its own and licensed brands. OXM has an average positive surprise of 99.7% over four quarters.

The Chef’s Warehouse is a distributor of specialty food products in the United States. CHEF has an average positive surprise of 372.3% over four quarters.

Sanderson Farms is a poultry processing company that produces, processes, markets and distributes fresh and frozen chicken products. SAFM posted an average positive surprise over four quarters of 60.5%.

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For the rest of this article on Screen of the Week, please visit Zacks.com at: https://www.zacks.com/stock/news/1956269/3-of-the-most-efficient-stocks-to-boost-your-portfolio-returns

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 the options mentioned herein. An affiliated investment adviser may hold or have shorted securities and/or hold long and/or short positions in options mentioned herein.

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Solid stocks that should make headlines

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

5 shares ready to double

Each was handpicked by a Zacks expert as the #1 preferred stock to earn +100% or more in 2021. Previous recommendations have skyrocketed +143.0%, +175.9%, + 498.3% and +673.0%.

Most of the stocks in this report fly under the radar on Wall Street, which provides a great opportunity to get in on the ground floor.
Today, check out these 5 potential home runs >>
Click to get this free report

Sanderson Farms, Inc. (SAFM): Free Stock Analysis Report

Oxford Industries, Inc. (OXM): Free Stock Analysis Report

The Chefs’ Warehouse, Inc. (CHEF): Free Inventory Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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