For Immediate Release

Chicago, IL – April 21, 2025 – Stocks in this week’s article are Allot ALLT, Companhia de Saneamento Básico do Estado de São Paulo - SABESP SBS, Lindsay LNN, Equity Bancshares EQBK and Griffon GFF.

5 Must-Buy Efficient Stocks Amid Volatile Market Conditions

Irrespective of market conditions, companies with favorable efficiency levels are more likely to be investors' choices. The reason is that a company with a favorable efficiency level is expected to offer impressive returns as it is believed to be positively correlated to its price performance.

The efficiency ratio is an indication of a company's financial health. It analyzes how efficiently a company uses its assets and liabilities internally.

However, at times it becomes difficult to measure the efficiency level of a company. This is why one must consider the popular efficiency ratios listed below while selecting stocks.

To that end, Allot, Companhia de Saneamento Básico do Estado de São Paulo - SABESP,Lindsay, Equity Bancshares and Griffon have made it through the screen process:

Efficiency Ratios to be Considered

Receivables Turnover: This is the ratio of 12-month sales to four-quarter average receivables. It shows a company's potential to extend its credit and collect debt in terms of that credit. A high receivables turnover ratio or the "accounts receivable turnover ratio" or "debtor's turnover ratio" is desirable as it shows that the company is capable of collecting its accounts receivables or that it has quality customers.

Asset Utilization: This ratio indicates a company's capability to convert assets into output and is thus a widely known measure of efficiency level. It is calculated by dividing total sales over the past 12 months by the last four-quarter average of total assets. Like the above ratios, high asset utilization may indicate that a company is efficient.

Inventory Turnover: The ratio of the 12-month cost of goods sold (COGS) to a four-quarter average inventory is considered one of the most popular efficiency ratios. It indicates a company's ability to maintain a suitable 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.

Operating Margin: This efficiency measure is the ratio of operating income over the past 12 months to sales over the same period. It measures a company's ability to control operating expenses. Hence, a high value of the ratio may indicate that the company manages its operating expenses more efficiently than its peers.

Story Continues

Here are the top five stocks that made it through the screen:

Allot

Allotis a provider of network intelligence and security solutions for service providers and enterprises. ALLT has an average four-quarter positive earnings surprise of 106.7%.

Companhia de Saneamento Básico do Estado de São Paulo - SABESP

Companhia de Saneamento Básico do Estado de São Paulo - SABESP provides public water and sewage services to residential, commercial, industrial and governmental customers in the City of Sao Paulo. SBS has an average four-quarter positive earnings surprise of 30.8%.

Lindsay

Lindsay provides a variety of proprietary water management, and road infrastructure products and services. LNN has an average four-quarter positive earnings surprise of 17.9%.

Equity Bancshares

Equity Bancshares operates as a bank holding, which provides financial services primarily to businesses, business owners and individuals, primarily in Kansas and Missouri. EQBK has an average four-quarter positive earnings surprise of 17.3%.

Griffon

Griffon isengaged in the manufacture and sale of a wide range of consumer and professional, and home and building products including garage doors, shutters, materials for disposable diapers and disposable health care products. GFF has an average four-quarter positive earnings surprise of 14.7%.

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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/2450440/5-must-buy-efficient-stocks-amid-volatile-market-conditions

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 options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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Lindsay Corporation (LNN):Free Stock Analysis Report

Companhia de saneamento Basico Do Estado De Sao Paulo - Sabesp (SBS):Free Stock Analysis Report

Allot Ltd. (ALLT):Free Stock Analysis Report

Equity Bancshares, Inc. (EQBK):Free Stock Analysis Report

Griffon Corporation (GFF):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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